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In XOOPS 2.5.6 PHP 5.3.7+ was more or less recommended, but in XOOPS 2.5.7 it became the minimum required. However, we recommend at least PHP 5.4, and probably even better it would be to use PHP 5.5. Most of the decent hosts provide already PHP 5.4 and 5.5. If yours doesn't, I can most highly recommend Arvixe:
Great price, and great service. Our server is running on their host, and we're very happy!
Reg. PHP, I am testing XOOPS right now on
PHP 5.6.2 and so far I didn't encounter any problems. Let's hope, it will stay that way