The error says "The project was created using an incompatible template and cannot be cut/printed on this machine".
The most likely reason for this error is that you are trying to cut/print to a Cricut that has a different size mat than the one you created your design on.
In the above case I created my design on the 6" x 12" mat for the Cricut Personal and tried to cut it on the E2.
There's two ways to fix this error.
1. Go to Options menu, Project tab and select the E2 as the Default machine
2. Leave the Default Machine setting the way it is and connect the Cricut Personal.
In both cases when you go to Cut/Print your machine will now be available to select and you won't see the error.