Simple template
{* Smarty *}

Hello, {$name}!
PHP Code
<?
define(SMARTY_DIR,'/usr/local/lib/php/Smarty/');
require(SMARTY_DIR.'Smarty.class.php');

$smarty = &new Smarty;

$smarty->template_dir = 
    '/web/www.mydomain.com/smarty/guestbook/templates/';
$smarty->compile_dir = 
    '/web/www.mydomain.com/smarty/guestbook/templates_c/';
$smarty->config_dir = 
    '/web/www.mydomain.com/smarty/guestbook/configs/';
$smarty->cache_dir = 
    '/web/www.mydomain.com/smarty/guestbook/cache/';

$smarty->assign('name','Ned');

$smarty->display('index.tpl');
?>