
I'll finish the crosscheck up and see if I can find someplace to put the file up at tomorrow. When I have it up and I have thouroughly tested it for blatent errors, I'll let ya all know.
-zimmi88 =)

tag? Check your theme file for errors.
Also, set the system preference you described to "No" and see if that changes anything.
If you're still having problems, feel free to post back for more assistance. Good luck with your site!
-zimmi88 =)
EDIT:
-----
Oooooohhhhh... just looked at the source output... for the smarty vars, it's using lt and gt (left incomplete so the text renders correctly) tags when it should be using < and >, respectively. Try finding & replacing the "&" tags with < and >.
<{if $xoops_isuser}>
DRAW OUT PAGE CONTENT
<{else}>
REDIRECT THE USER
<{/if}>
<div align="right">
<{if $op == "out"}>
<a href="viewpmsg.php?op=in" onmouseover="document.inbox_img.src='images/inbox_on.png'" onmouseout="document.inbox_img.src='images/inbox_off.png'"><img name="inbox_img" src="images/inbox_off.png">a><img name="outbox_img" src="images/outbox_on.png"><a href="viewpmsg.php?op=save" onmouseover="document.saved_img.src='images/saved_on.png'" onmouseout="document.saved_img.src='images/saved_off.png'"><img name="saved_img" src="images/saved_off.png">a><a href="#" onmouseover="document.sendnew_img.src='images/sendnew_on.png'" onmouseout="document.sendnew_img.src='images/sendnew_off.png'" onclick="javascript:openWithSelfMain('****/modules/pm/pmlite.php?send=1','pmlite',550,450)"><img name="sendnew_img" src="images/sendnew_off.png">a>
<{elseif $op == "save"}>
<a href="viewpmsg.php?op=in" onmouseover="document.inbox_img.src='images/inbox_on.png'" onmouseout="document.inbox_img.src='images/inbox_off.png'"><img name="inbox_img" src="images/inbox_off.png">a><a href="viewpmsg.php?op=out" onmouseover="document.outbox_img.src='images/outbox_on.png'" onmouseout="document.outbox_img.src='images/outbox_off.png'"><img name="outbox_img" src="images/outbox_off.png">a><img name="saved_img" src="images/saved_on.png"><a href="#" onmouseover="document.sendnew_img.src='images/sendnew_on.png'" onmouseout="document.sendnew_img.src='images/sendnew_off.png'" onclick="javascript:openWithSelfMain('****/modules/pm/pmlite.php?send=1','pmlite',550,450)"><img name="sendnew_img" src="images/sendnew_off.png">a>
<{elseif $op == "in"}>
<img name="inbox_img" src="images/inbox_on.png"><a href="viewpmsg.php?op=out" onmouseover="document.outbox_img.src='images/outbox_on.png'" onmouseout="document.outbox_img.src='images/outbox_off.png'"><img name="outbox_img" src="images/outbox_off.png">a><a href="viewpmsg.php?op=save" onmouseover="document.saved_img.src='images/saved_on.png'" onmouseout="document.saved_img.src='images/saved_off.png'"><img name="saved_img" src="images/saved_off.png">a><a href="#" onmouseover="document.sendnew_img.src='images/sendnew_on.png'" onmouseout="document.sendnew_img.src='images/sendnew_off.png'" onclick="javascript:openWithSelfMain('****/modules/pm/pmlite.php?send=1','pmlite',550,450)"><img name="sendnew_img" src="images/sendnew_off.png">a>
<{/if}>
div>
body {color: black; background: white; margin: 0; padding: 0;}
table {width: 100%; margin: 5; padding: 5; font-size: small}
table td {padding: 0; border-width: 0; vertical-align: top; font-family: Verdana, Arial, Helvetica, sans-serif;}
a {color: #666666; text-decoration: none; font-weight: bold; background-color: transparent;}
a:hover {color: #ff0000;}
h1 {}
h2 {}
h3 {}
h4 {}
h5 {}
ul { margin: 2px; padding: 2px; list-style: decimal inside; text-align: left;}
li { margin-left: 2px; list-style: square inside; color: #2F5376}
input.formButton {}
.item {border: 1px solid #cccccc;}
.itemHead {padding: 3px; background-color: #2F5376; color: #FFFFFF;}
.itemInfo {text-align: right; padding: 3px; background-color: #efefef}
.itemTitle a {font-size: 130%; font-weight: bold; font-variant: small-caps; color: #ffffff; background-color: transparent;}
.itemPoster {font-size: 90%; font-style:italic;}
.itemPostDate {font-size: 90%; font-style:italic;}
.itemStats {font-size: 90%; font-style:italic;}
.itemBody {padding-left: 5px;}
.itemText {margin-top: 5px; margin-bottom: 5px; line-height: 1.5em;}
.itemText:first-letter {font-size: 133%; font-weight: bold;}
.itemFoot {text-align: right; padding: 3px; background-color: #efefef}
.itemAdminLink {font-size: 90%;}
.itemPermaLink {font-size: 90%;}
td#PM_folder_tab {text-align:right;}
td#PM_tabshell_left_on {text-align:right;}
td#PM_tabshell_fill_on {background-image: url(http://****/modules/pm/images/shellfill_on.png); font-size:12px; padding:0px; text-align:center; margin-left:0px;}
div#PROFILE_edit_tab {width:96%; text-align:right; font-size:2px;}
td#TAB_emptycell {font-size:2px; padding: 0px 0px 0px 0px;}
td#TAB_filledcell {font-size:2px; padding: 0px 0px 0px 0px; text-align:right;}
td#STORYBLOCK_left {text-align:left; text-color:#FFFFFF; width:330px; height:300px; background-image: url(http://****/storyblock_files/story_template.png);}
td#STORYBLOCK_right {text-align:right; text-color:#FFFFFF; width:150px; height:300px; background-image: url(http://****/storyblock_files/sidebar.png);}
th {background-color: #2F5376; color: #FFFFFF; padding : 2px; vertical-align : middle; font-family: Verdana, Arial, Helvetica, sans-serif;}
td#headerlogo {background-image: url(star_tile.gif); width: 270px; font-size:2px; padding: 0px 0px 0px 0px;}
td#headerbanner {background-image: url(star_tile.gif); vertical-align: middle; text-align: center;}
td#headerbar {background-image: url(hbar_top.gif);}
td#headermodlogo {background-image: url(star_tile.gif); vertical-align: bottom; text-align: right; font-size:2px; padding: 0px 0px 0px 0px;}
td#leftcol_header {background-color: #E60000; font-size: 2px; vertical-align: bottom; width: 15%;}
td#mynav_topcorners {background-color: #E60000; font-size: 2px; padding: 0px 0px 0px 0px; width: 30px;}
td#mynav_top {background-image: url(mynav_top.png); font-size:2px; padding: 0px 0px 0px 0px;}
td#mynav_left {background-image: url(mynav_tileleft.png); font-size:2px; padding: 0px 0px 0px 0px; width: 30px;}
td#mynav {background-image: url(mynav_bg.png); padding: 0px 0px 0px 0px; color:#FFFFFF;}
td#mynav_right {background-image: url(mynav_tileright.png); font-size:2px; padding: 0px 0px 0px 0px; width: 30px;}
td#quikhelp {background-image: url(mynav_bg.png); text-align: right; padding: 0px 0px 0px 0px; font-size: 2px;}
td#rightcol_header {background-color: #E60000; font-size: 2px; text-align: right; vertical-align: bottom; width: 15%;}
td#blockheaderlogo {font-size:2px;}
td#leftcolumn {width: 15%; font-size:12px;}
td#leftcolumn th {background-color: #2F5376; color: #FFFFFF; vertical-align: middle;}
td#leftcolumn div.blockTitle {padding: 3px; background-color: #dddddd; color: #639ACE; font-weight: bold;}
td#leftcolumn div.blockContent {line-height: 120%; line-height: 120%;}
td#centercolumn {font-size: 12px; border-left: 3px solid #E60000; border-right: 3px solid #E60000;}
td#centercolumn th {background-color: #2F5376; color: #FFFFFF; vertical-align: middle;}
td#centerCcolumn {padding: 0px 3px 1px 3px;}
td#centerCcolumn legend.blockTitle {padding: 3px; color: #639ACE; font-weight: bold; margin-top: 0px; margin-right: 0px; margin-left: 0px;}
td#centerCcolumn div.blockContent {margin-right: 0px; margin-left: 0px; margin-bottom: 0px; line-height: 120%;}
td#centerLcolumn {width: 50%; padding: 0px 3px 0px 0px;}
td#centerLcolumn legend.blockTitle {padding: 3px; color: #639ACE; font-weight: bold; margin-top: 0px;}
td#centerLcolumn div.blockContent {border-left: 1px solid #cccccc; border-right: 1px solid #cccccc; border-bottom: 1px solid #dddddd; padding: 3px; margin-left: 3px; margin-right: 2px; margin-bottom: 2px; line-height: 120%;}
td#centerRcolumn {width: 50%; padding: 0px 3px 0px 0px;}
td#centerRcolumn legend.blockTitle {padding: 3px; color: #639ACE; font-weight: bold; margin-top: 0px;}
td#centerRcolumn div.blockContent {border-left: 1px solid #cccccc; border-right: 1px solid #cccccc; border-bottom: 1px solid #dddddd; padding: 3px; margin-left: 2px; margin-right: 3px; margin-bottom: 2px; line-height: 120%;}
div#content {text-align: left; padding: 8px;}
td#rightcolumn {width: 15%; font-size:12px;}
td#rightcolumn th {background-color: #2F5376; color: #FFFFFF; vertical-align: middle;}
td#rightcolumn div.blockTitle {padding: 3px; background-color: #dddddd; color: #639ACE; font-weight: bold;}
td#rightcolumn div.blockContent {line-height: 120%;}
td#homepage_topbox_gradient {width: 60px; background-image: url(homepage_topbox_gradient.png);}
td#homepage_topbox_headers {background-image: url(bigbg.png);}
tr#footerbar {background-image: url(hbar_bottom.gif); height: 23px;}
td#logohrbar {text-align: left; background-image: url(hbar_logo.gif);}
td#logohrlogo {text-align: right; background-image: url(hbar_logo.gif);}
td#mainmenu a {background-color: #e6e6e6; display: block; margin: 0; padding: 4px;}
td#mainmenu a:hover {background-color: #ffffff;}
td#mainmenu a.menuTop {padding-left: 3px; border-top: 1px solid silver; border-right: 1px solid #666666; border-bottom: 1px solid #666666; border-left: 1px solid silver;}
td#mainmenu a.menuMain {padding-left: 3px; border-right: 1px solid #666666; border-bottom: 1px solid #666666; border-left: 1px solid silver;}
td#mainmenu a.menuSub {padding-left: 9px; border-right: 1px solid #666666; border-bottom: 1px solid #666666; border-left: 1px solid silver;}
td#usermenu a {background-color: #e6e6e6; display: block; margin: 0; padding: 4px; border-right: 1px solid #666666; border-bottom: 1px solid #666666; border-left: 1px solid silver;}
td#usermenu a:hover {background-color: #ffffff;}
td#usermenu a.menuTop {border-top: 1px solid silver;}
td#usermenu a.highlight {background-color: #fcc;}
/* color -- dropdown menu for Forum */
div.dropdown a, div.dropdown .menubar a{
color:#FFF;
}
div.dropdown .menu, div.dropdown .menubar, div.dropdown .item, div.dropdown .separator{
background-color: #436792; /* same color set as in your theme/style.ss .th{} is recommended */
color:#FFF;
}
div.dropdown .separator{
border: 1px inset #e0e0e0;
}
div.dropdown .menu a:hover, div.dropdown .userbar a:hover{
color: #333;
}
/* color - end */
.outer {border: 1px solid silver;}
.head {background-color: #c2cdd6; padding: 5px; font-weight: bold;}
.even {background-color: #dee3e7; padding: 5px;}
.odd {background-color: #E9E9E9; padding: 5px;}
.foot {background-color: #c2cdd6; padding: 5px; font-weight: bold;}
tr.even td {background-color: #dee3e7; padding: 5px;}
tr.odd td {background-color: #E9E9E9; padding: 5px;}
div.errorMsg { background-color: #FFCCCC; text-align: center; border-top: 1px solid #DDDDFF; border-left: 1px solid #DDDDFF; border-right: 1px solid #AAAAAA; border-bottom: 1px solid #AAAAAA; font-weight: bold; padding: 10px;}
div.confirmMsg { background-color: #DDFFDF; color: #136C99; text-align: center; border-top: 1px solid #DDDDFF; border-left: 1px solid #DDDDFF; border-right: 1px solid #AAAAAA; border-bottom: 1px solid #AAAAAA; font-weight: bold; padding: 10px;}
div.resultMsg { background-color : #CCCCCC; color: #333333; text-align: center; border-top: 1px solid silver; border-left: 1px solid silver; font-weight: bold; border-right: 1px solid #666666; border-bottom: 1px solid #666666; padding: 10px;}
div.xoopsCode { background: #FFFFFF; border: 1px inset #000080; font-family: "Courier New",Courier,monospace; padding: 0px 6px 6px 6px;}
div.xoopsQuote { background: #FFFFFF; border: 1px inset #000080; font-family: "Courier New",Courier,monospace; padding: 0px 6px 6px 6px;}
.comTitle {font-weight: bold; margin-bottom: 2px;}
.comText {padding: 2px;}
.comUserStat {font-size: 10px; color: #2F5376; font-weight:bold; border: 1px solid silver; background-color: #ffffff; margin: 2px; padding: 2px;}
.comUserStatCaption {font-weight: normal;}
.comUserStatus {margin-left: 2px; margin-top: 10px; color: #2F5376; font-weight:bold; font-size: 10px;}
.comUserRank {margin: 2px;}
.comUserRankText {font-size: 10px;font-weight:bold;}
.comUserRankImg {border: 0;}
.comUserName {}
.comUserImg {margin: 2px;}
.comDate {font-weight: normal; font-style: italic; font-size: smaller}
.comDateCaption {font-weight: bold; font-style: normal;}