Basically there are 3 layers.
Database
PHP
Smarty
Smarty allows a pretty basic front end, and still allows coding in it - the coding needs to be smarty coding of course.
You can use PHP to collect information and interact with your database. The variables are then assigned to smarty from the php file, and a smarty display template is called, and then assigned variables can be used in your smarty templates which are located in the skin1 directory.
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