Here you go, this will work...
Code:
{section name=level loop=$membership_levels}
{if ($smarty.get.usertype eq "" and $membership_levels[level].usertype eq "C")or(($smarty.get.usertype eq $membership_levels[level].usertype) or ($active_modules.Simple_Mode ne "" and $smarty.get.usertype eq "P" and $membership_levels[level].usertype eq "A"))}
{$membership_levels[level].membership}
{/if}
{/section}