Pear has a good, simple, template engine (actually it's been around for years, but moved to PEAR). It doesn't cache or compile the files, which means it's ultimately slower than Smarty templates, BUT it doesn't need to write files to the server; thereby making it a lot easier for accounts on web host accounts - and just plain easier to setup overall.
http://pear.php.net/manual/en/package.html.html-template-it.intro.php
Notes:
This looks good too: http://phpsavant.com/yawiki/
tags: php, pear, template