Creating a Directory Structure

Lets discuss how to create new top-level directories for your theme and to copy files to those directories.

The top-level directories you’ll need are:

[your Magento install dir]/app/design/frontend/cartown/customtheme
[your Magento install dir]/skin/frontend/cartown/customtheme

To create those directories and to add your theme configuration:

Using a command shell, log in to your Magento host as a user with privileges to write to the web server docroot. (Typically, this is the web server user.)
Enter the following commands in the order shown:

cd [your Magento install dir]
mkdir -p app/design/frontend/cartown/customtheme
mkdir -p skin/frontend/cartown/customtheme