This worked for me on 4.0.9, here is the code.
/skin1/modules/Recommended_Products/recommends.tpl
Code:
{* $Id: recommends.tpl,v 1.4 2004/05/28 12:21:12 max Exp $ *}
{if $recommends}
{capture name=recommends}
{section name=num loop=$recommends}
<LI>
<font class=ProductPrice>{include file="currency.tpl" value=$recommends_prices[num].price}</font>
<font class=MarketPrice>{include file="customer/main/alter_currency_value.tpl" alter_currency_value=$recommends_prices[num].price}</font>
<span class="ItemsList">
{$recommends[num].product}</SPAN>
</LI>
{/section}
{/capture}
{include file="dialog.tpl" title=$lng.lbl_recommends content=$smarty.capture.recommends extra="width=100%"}
{/if}
The above is the full code in recommends.tpl