wordpress - 404 is working instead of custom blog template -

i developing wordpress template right now. have static index page. blog posts, using custom template named blog. when create page under blog template , try view page; doesn't show blog page rather shows 404.php

i using these files:

index.php //static index page blog.php //blog page under blog template 404.php 

this site http://ratcat.bugs3.com/samata/ , blog page isn't not working http://ratcat.bugs3.com/samata/blog-6

for more help, here blog.php main code segment:

            <div class="single_post">                 <?php                 // query                 $page = (get_query_var('paged')) ? get_query_var('paged') : 1;                 query_posts("paged=$page");                 // loop                 if(have_posts()) :                 while ( have_posts() ) : the_post();                 ?>                 <table>                     <tr>                         <td class="left_date">                                  <h1><?php the_time('d') ?></h1>                                 <p><?php the_time('m') ?></p>                                 <span class="year"><p><?php the_time('y') ?></p></span>                          </td>                         <td>                             <a href="<?php the_permalink(); ?>" ><h2><?php the_title(); ?></h2></a>                             <div class="author_tag">                                 <span class="author">by: <?php the_author_posts_link(); ?></span>                                 <span class="tag"><?php the_tags(); ?></span>                             </div>                             <div class="post">                                 <a href="<?php the_permalink(); ?>"><?php the_post_thumbnail('post-image', array('class' => 'post-thumb')); ?></a>                                 <p><?php the_excerpt(); ?></p>                                 <div class="read_comment">                                     <a href="<?php the_permalink(); ?>" title="full post"><span class="read">read more</span></a>                                     <span class="comment"><?php comments_popup_link('no comment', '1 comment', '% comments'); ?></span>                                 </div>                             </div>                         </td>                     </tr>                 </table>                 <div class="clear"></div>                 <div class="gap"></div>                 <?php                     endwhile; ?>                     <table class="nav_post">                         <tr>                             <td><div class="nav-previous"><?php next_posts_link( __( '<span class="meta-nav">&laquo;</span> previous posts') ); ?></div></td>                             <td><div class="nav-next"><?php previous_posts_link( __( 'next posts <span class="meta-nav">&raquo;</span>') ); ?></div></td>                         </tr>                     </table>                     <?php                     endif;                     // reset query                     wp_reset_query();                 ?>             </div> 

try thing put template code on blog.php paste code

<?php /*  * template name: blog template  */ ?> 

and after in admin blog page edit template can see blog template in dropdown while editing blog page. hope work you.