Even with all the warnings and direction within the documentation of ExpressionEngine on setting up templates as flat files to check with your host on the proper server path – it still took me a good 45 minutes to track the proper path down and get it just right.

The server path is: /var/www/vhosts/example.com/httpdocs/  example.com can even be sub.example.com

I have a Dedicated Virtual 4 ( DV 4.0) at Mediatemple with Plesk 10 and ExpressionEngine 2. I have been working directly in the EE editor which has been fine but just not the same as my normal workflow. Finally took the plunge and attempted to setup the templates as flat files so I can use my preferred editor (Espresso 2)

In the end the full path within the Global Template Preferences is:

/var/www/vhosts/example.com/httpdocs/system/expressionengine/templates/

You need to create the folder default_site but Do NOT include the default_site in this path

As long as you have set the /templates/ folder to be 777 and recursive, all folder and files within your template manager will be automatically created.

Still working on a way to not have to set each template to save as text manually.