1. How I can Create a custom Template for it?
PrestaShop templates are designed by using a program named Smarty. You can learn about this tool at www.smarty.net
2. Is there any option to upgrade it automatically? like in diff. forums there is an option to upgrade, and with just a single click that is updated.
There is an auto upgrade module that you can install in the PrestaShop. This should help you upgrade the the newer 1.5 version.
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