inventory module error

hello all,

i just installed phpgroupware for one purpose - to use the inventory 
module. once i got phpgroupware up and running i unpacked the inventory 
module and moved it into the phpgroupware directory. next i added the 
application and the icon then appeared in the navigation. however, when 
i click the inventory icon i get this error:

*Template Error:* set_root: is not a directory.
*Halted.

*i have tried everything i can think of (and googled the error as well). 
i have come up with nothing. can anyone here help me?

thank you so much.

jack wallen*
*