Smarty error..no images show

Dear all,

I'm getting the following error:

Warning: Compilation failed: failed to get memory at offset 0 in /home/content/k/a/r/karembu/html/gallery/lib/smarty/Smarty_Compiler.class.php on line 431

Fatal error: Smarty error: [in gallery:modules/imageblock/templates/ImageBlock.tpl line 1]: syntax error: unrecognized tag: php (Smarty_Compiler.class.php, line 432) in /home/content/k/a/r/karembu/html/gallery/lib/smarty/Smarty.class.php on line 1088

When I open the gallery. Albums get created, but they do not appear on the gallery root. The only way to get to them is to use the drop-down list. Creating albums, navigating to albums and adding items sometimes gives the same error as well. Uploaded pictures do not appear in any album.

I tried it on my local machine (Windows XP, Apache 2.0.53, PHP 5.0.3, MySQL, ImageMagick) and it worked flawlessly...so it appears to be a configuration issue with the hosting service or else a problem with Gd vs. ImageMagick

Please help..

Thanks.

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Gallery URL (optional): http://karembu.com/gallery/index.php
Gallery version: G2 - Jesse Mullan's nighly build 03/02/2005
Webserver (with version): Apache 1.3.28
Datatabase (with version): MySQL (version not available)
PHP version (eg 4.2.1): 5.0.3
phpinfo URL (optional):
Graphics Toolkit(s): Gd
Operating system: Linux
Web browser/version: Firefox 1.0
G1 version (for migration bugs):