Is that example code you gave really the example you are using? I don't know why smarty should parse that.
Have you replaced { and } with {rdelim} and {ldelim}?
Regards,
Garvin
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ok got it thanks garvin for the hints. i found this on smarty page:)
{literal} tags allow a block of data to be taken literally. This is typically used around javascript or stylesheet blocks where curly braces would interfere with the template delimiter syntax. Anything within {literal}{/literal} tags is not interpreted, but displayed as-is. If you need template tags embedded in your {literal} block, consider using {ldelim}{rdelim} to escape the individual delimiters instead.