Create a separate TPL file for the javascript that goes in the head of the document. Name it something like javascript_header.tpl and include it customer/home.tpl. It worked great for me.
Second always use {literal}{/literal} tags around any Javascript functions. The reason is that JavaScript uses {} to declare functions. Smarty will interpret it as smarty and not JS. Which is one of the reasons why it keeps blowing up.
This is what your javascript_header.tpl should look like.
Code:
{literal}
<script language="JavaScript"">
function showStatusMsg(msgStr)
{
status=msgStr;
document.BigValue = true;
}
</script>
{/literal}
This is what your customer/home.tpl should look like.
Code:
<html>
<head>
<title>My site</title>
{ include file="javascript_header.tpl" }
</head>
I do have a working example of JS image rollovers on my current X-Cart store.
http://www.angelcycleworld.com/cart/customer
NOTE: Don't try to use a JS file. For some reason IE doesn't like a JS file in smarty.
I sure hope this helps you guys out.
-Jeremy