..quite literally trash.
The author has includes under the webroot.
(It would be best if your application directory sat PARALLEL to your template folder, include folders and class files. Also a /conf & a /ini directory PARALLEL to the application pages would be logical.)
He encourage illogical include practices.
(Smarty should not need to be copied to your application directory. Easier.. toss it in a folder under your php install and add the path to your include_path setting in php.ini.)
Second encouraging a user to turn register globals on instead of fixing your code is downright retarded. As is, your examples don't work on any system with short tags off and register globals off.. which in my experience is almost all hosts.
If anyone wants a zip copy of this in a working fashion with .sql dumps and the table schemas feel free to email me @ Abba.Bryant AT gmail.com