If your running 3.5.0:
Edit smarty.php and update the corresponding code at line 39:
Code:
#
# Define SMARTY_DIR to avoid problems with PHP 4.2.3 & SunOS
#
define('SMARTY_DIR', $xcart_dir.DIRECTORY_SEPARATOR."Smarty-2.5.0".DIRECTORY_SEPARATOR);
if (!@include(SMARTY_DIR."Smarty.class.php")) {
if (!@include("../".SMARTY_DIR."Smarty.class.php")) {
echo "Can't to find template engine!";
exit;
}
}
Should do the trick.