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I am having the same problem.
I'm using PHP 4.33, and XOOPS 2.0.5. I tried the patch for the update just incase, but it didn't make any difference.
I'm getting the "Fatal error: Cannot pass parameter 4 by reference in /home/evilbutsexy/www/modules/newbb/viewtopic.php on line 256" error message.
I'm baffled as I have the forums running on another site - same web host, same system, same everything.
I am somewhat of a XOOPS newbie, so any suggestions would be very much appreciated.