Gaile, I’m using Mozilla, and I just did the code that Curioso posted and it now works for me. I do have a somewhat fresh copy of WP1.2, so maybe that’s helping me.
Wanna elaborate what Moz is doing?
As much as I like Smarty, and personally think that WP would be adding some easy functionality by using it, I can understand developers of WP not wanting to use it and opting for something else to replicate template functionality.
It sounds like Smarty’s definitely out of the picture, so I don’t understand why it’s listed here: http://wordpress.org/about/future/. Should it perhaps says “templating” instead?
Some form of easy templating should be done. I really don’t think sticking things in a .php file is the best solution, since with Smarty you assign variables to the class and you pick a template and voila. So it’s easy to switch stuff around, with an index.php as the template file, well … it’s not dynamic. Smarty also takes care of caching and other things. It’d be nice to see all these things handled in WP.