The problem was
"I have a MOSS 2007 site that was an upgrade from a SPS 2003 site. Now when I try to create new sites from the Home tab the only option for templates I get is the Publishing tab and the Publishing Site template. No other tabs or templates are available."
The solution from "RP" was
Go to site settings, under the look and feel select "page layouts and site templates" link and select the "sub sites can use any templates" radio button and click OK.
If you do not see "page layouts and site templates" link...access it
directly from http://<server>:<port>/<site