Correct, 5 Repositories (servers), each template (255 I think) got to one of those 5, but can have a subfolder for each one.
So repository 1 can be to a server at 192.168.1.100 and a folder called users.
The templates go to that repository and build on it
Repository = smb:\\192.168.1.100\Users
Template for Gary goes to the above location, and his folder Gary, which would be at address smb:\\192.168.1.100\Users\Gary
This allows you to only need to change the repository when something (login/IP) changes server side instead of a bunch of templates.
Unlike newer machines, there is no way to create a template direct to each users desktop PC.
You can do so somewhat using the Address book, but to even get the option to allow a password to be stored for it, you need to make sure HTTPS is enabled on the printer (so it can encrypt the login), but in doing so, due to the age of the device, many current gen browsers won't be able to use CWIS.