In this new post to the SitePoint PHP Blog there's a look at using a small templating engine recently released by Fredrik Holmstrom that takes a different tack on working with template files - it parses them into a DOM structure.
The main difference to traditional template engines (Such as Smarty), is that the template it self doesn't have any imperatives within. In fact, the template doesn't even have to be written to the template engine, to be used - Any markup can be used as a source.
The templating system uses Domlings, bits of HTML to match against and replace with the bound information. A few examples are included - a simple binding, how to switch out a block of HTML, pushing it back in and looping over a block of information to do some search and replace.