The solution to a similar problem (JInstaller: :Install: Cannot find XML setup file) when trying to install some free templates - e.g. js_studio_free_UNZIP.zip .
1st unzip / extract the js_studio_free_UNZIP folder into a directory/folder on your computer (7zip is useful to view & extract the content of zip files).
2. When you extract this folder (js_studio_free_UNZIP.zip) there should be a template folder containing the zip file (js_studio_free.zip) to be used in the Joomla extension manager.Make a note of where you have extracted the folder and the js_studio_free.zip file.
3. Go to Extensions menu (in your Joomla 2.5.x installation administrator back end) & select Extension Manager - using Upload Package File - browse to locate js_studio_free.zip file - select the file
4. once the js_studio_free.zip **file is displayed in the Upload Package File window - **select Upload & Install
If this doesn't work there is a readme html file in the unzipped folder which makes a few suggestions :-)
Error! Could not find an XML setup file in the package
- This means Joomla wasn't able to find the specific file in the zip that tells it how to install the template.
JFolder::create: Could not create directory. Warning! Failed to move file.
- This error is due to incorrect folder settings on your server. Its a Joomla, not a template error. To check you have the right permissions, Joomla has a built in tool: "Help > System Info > Directory Permissions" These all need to be green for Joomla to work properly. You can find more information about how to set up servers for Joomla here in the Joomla documentation.
Should you have any questions, please first check the template documentation and the Studio - Free Version community forum. Joomlashack provides support for template bugs and issues only, and all customization and other discussions should be referred to the Studio - Free Version community forum. If you get run into template bugs, you can contact our support team during normal business hours.