Have you tried to install Smarty on your XAMPP server?
What errors, if any, did you receive?
Have you seen this FAQ?
http://smarty.incutio.com/?page=SmartyF ... #install-2
http://www.phpinsider.com/smarty-forum/ ... .php?t=586
There is also an install guide for Windows and this document assumes that you have a webserver and php5:
I did a Google for smarty for apache windows
which returned some useful pages.
Someone who has installed Smarty might read this thread and give more info for you. If I get time I may see if I can install it and post back, but don't hold your breath.