Google Sites has again been updated to give more new features: 

New Features 

• Site Templates

  You can now save a whole site as a template!  You can set all the formatting options, logo, background images for the whole site as a template to be used again and again.  To make a site template use the More Actions button, then Manage site, then go to the General settings page and scroll to the bottom of the page and use the Publish this site as a template link: give the template a name, a description and then use the Submit template  button.  The next time you go to make a new site you can select it from the gallery of site templates.
  

  Note: if you use Google Apps then this template will only be available for your domain, even if the site is public.  If you want to make a Site Template to be used outside of the domain use the Copy Site feature to copy the site out of the domain, then make the copy public and a template.

  You can re-edit the template by just visiting the site and editing as normal.

• Making an Image a Link

  You no longer have to edit the HTML to make an image a link.  I have updated my article - Google Sites - Making an Image a Link - to show the new way to do it by just using the Google Sites tools.

• Recent Posts Gadget
  

  The Recent Posts gadget now supports a thumbnail of the first image in your post on small snippets as well as medium.

Bugs Fixed

• Copy Site and Site Templates
  

  After the initial release of Site Templates there were a few bugs spotted: these were fixed within two days of the launch so they are no longer an issue now.

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