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    My changes to get SmartFAQ 1.08 to validate for CSS level 2 and XHTML 1.0 Transitional are shown below -- under XOOPS 2.3.2 and PHP5.
SmartFAQ 1.08 Module
smartfaq_index.html (template)
NEW - fixing misplaced semicolon removed 9 errors! 

 <{$lang_categories_summary}>
OLD 

 <{$lang_categories_summary}>
Note: Also, in order to prevent the page from scrolling to the top when lists are expanded or collapsed (toggled), I replaced href='#' with href='javascript:void(0)' in this template and the smartfaq_lastfaqs.html (template), as well as the 'javascript:;' in the smartfaq_category.html (template).
smartfaq_category.html (template)
NEW  
  | 
 
 OLD  
 
 
 smartfaq_singlefaq.html (template)
NEW 
 <{if $display_categoryname}> 
 <{/if}> 
 
 <{$faq.who_when}> (<{$faq.counter}> <{$lang_reads}>)
 
 
 OLD 
 
 <{if $display_categoryname}>
 
 <{/if}>
 
 <{$faq.who_when}> (<{$faq.counter}> <{$lang_reads}>)
 
   smartfaq_index.html (template)
NEW  
  | 
 
 OLD  
 
 
 Blocks Administration
Needed to replace all occurrences of simple ampersand, for example, in "Recent Q&A List" title, with & a m p ;
That change is not visible on web page after the edit; but can be seen in the page's source code.