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Hmmm... looks like your site is displaying the smarty variables rather than printing the content in place of the smarty vars.
Personally, I've deployed Google Analytics on my network and I've had no problems with it. Did you put the code provided just before the </body> 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:
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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 >.
"Need coffee, keep away..."