A Template is really just a Virtual Machine that you cannot run.
You build the template as a Virtual Machine. Once you have the Virtual Machine configured to exactly how you want it, you shut it down and, via Virtual Center or the VI Client, right click on the VM and select Convert to Template.
This template can be used to deploy other Virtual Machines that you would like to have the same characteristics as the template (perhaps a workstation image for VDI or if your company has a standard Linux Web Server build). After a machine is deployed from a template, the machine is completely independant from the template.
Additionally, you can convert the template back to a virtual machine to update it (run Windows update, for example) so that any future deployments are updated as well.
A template only consumes disk space seeing as it cannot be run.
Cloning is actually just creating an exact copy of the Virtual Machine. However, the clone source (the original machine) can be restarted.
In your situation, I would suggest creating a template. A clone would require the source VM be shut down in order to copy it. The template could be deployed at any time without interrupting any other machines.
I hope that helps!
~Bill