diff --git a/change_log.txt b/change_log.txt
index 15151175..deaf20af 100644
--- a/change_log.txt
+++ b/change_log.txt
@@ -1,4 +1,6 @@
-
+10/01/2009
+- reactivated PHP resource for simple PHP templates. Must set allow_php_templates = true to enable
+- {PHP} tag can be enabled by allow_php_tag = true
 
 09/30/2009
 - fixed handling template_exits methode for all resource types
diff --git a/demo/index.php b/demo/index.php
index 0da1b9d8..8bada438 100644
--- a/demo/index.php
+++ b/demo/index.php
@@ -6,13 +6,11 @@ $smarty = new Smarty;
 
 
 //$smarty->force_compile = true;
-//$smarty->debugging = true;
+$smarty->debugging = true;
 $smarty->caching = true;
-$smarty->caching_lifetime = 120;
+$smarty->cache_lifetime = 120;
 
-
-
-$smarty->assign("Name","Fred Irving Johnathan Bradley Peppergill");
+$smarty->assign("Name","Fred Irving Johnathan Bradley Peppergill",true);
 $smarty->assign("FirstName",array("John","Mary","James","Henry"));
 $smarty->assign("LastName",array("Doe","Smith","Johnson","Case"));
 $smarty->assign("Class",array(array("A","B","C","D"), array("E", "F", "G", "H"),
diff --git a/demo/index_php_template.php b/demo/index_php_template.php
index f7971ea5..2f95bf67 100644
--- a/demo/index_php_template.php
+++ b/demo/index_php_template.php
@@ -5,7 +5,6 @@
 * @package SmartyTestScripts
 */
 require('../libs/Smarty.class.php');
-ini_set('short_open_tag','1');
 
  class Person
 {
@@ -31,11 +30,13 @@ ini_set('short_open_tag','1');
 }  
 
 $smarty = new Smarty();
+$smarty->allow_php_templates= true;
 $smarty->force_compile = false;
-$smarty->caching = false;
-$smarty->cache_lifetime = 10;
+$smarty->caching = true;
+$smarty->cache_lifetime = 100;
+//$smarty->debugging = true;
 
-$smarty->assign('foo','<bar>');
+$smarty->assign('foo',"'bar'");
 
 $person = new Person;
 
diff --git a/demo/templates/index_view.php b/demo/templates/index_view.php
index ad760aa1..833fe961 100644
--- a/demo/templates/index_view.php
+++ b/demo/templates/index_view.php
@@ -1,11 +1,13 @@
 PHP file test
 $foo is <?=$foo?>
-<br> Test modifier chaining
-<?=$foo->trim()->escape('html')?>
+<br> Test functions
+<? echo trim($foo,"'");?>
 <br>Test objects
-<?=$person->setName('Paul')->setAge(39)->introduce()->trim()->truncate(10)?>
+<?=$person->setName('Paul')->setAge(39)->introduce()?>
 <br>Test Arrays
-<?=$array['a']['aa']->truncate(5)?><?=$array['b']?>
-<br>Function
-<?=$_f->trim($array['a']['aa'])->truncate(10)?>
-DONE
+<?=$array['a']['aa']?> <?=$array['b']?>
+<br>function time 
+<? echo time();?>
+<br>nocache function time 
+<? echo '<? echo time();?>';?>
+<br>DONE
diff --git a/libs/Smarty.class.php b/libs/Smarty.class.php
index cb750687..89debee6 100644
--- a/libs/Smarty.class.php
+++ b/libs/Smarty.class.php
@@ -135,6 +135,8 @@ class Smarty extends Smarty_Internal_TemplateBase {
     public $right_delimiter = "}"; 
     // security
     public $php_handling = SMARTY_PHP_PASSTHRU;
+    public $allow_php_tag = false;
+    public $allow_php_templates = false;
     public $security = false;
     public $security_policy = null;
     public $security_handler = null;
diff --git a/libs/plugins/block.php.php b/libs/plugins/block.php.php
index 371d4a77..cb7d5cba 100644
--- a/libs/plugins/block.php.php
+++ b/libs/plugins/block.php.php
@@ -25,9 +25,9 @@ function smarty_block_php($params, $content, $smarty, &$repeat, $template)
         $sec_obj = $smarty;
     } 
     if (is_null($content)) {
-    if ($sec_obj->php_handling != SMARTY_PHP_ALLOW) {
-        trigger_error("{php} is deprecated, set php_handling = SMARTY_PHP_ALLOW to enable",E_USER_WARNING);
-    } 
+        if (!$smarty->allow_php_tag) {
+            trigger_error("{php} is deprecated, set allow_php_tag = true to enable", E_USER_WARNING);
+        } 
         return;
     } 
 
diff --git a/libs/sysplugins/internal.resource_stream.php b/libs/sysplugins/internal.resource_stream.php
index 27527825..bfcf9167 100644
--- a/libs/sysplugins/internal.resource_stream.php
+++ b/libs/sysplugins/internal.resource_stream.php
@@ -30,7 +30,7 @@ class Smarty_Internal_Resource_Stream {
     */
     public function isExisting($template)
     {
-        if ($template->getTemplateSource() === false) {
+        if ($template->getTemplateSource() == '') {
             return false;
         } else {
             return true;
diff --git a/libs/sysplugins/internal.template.php b/libs/sysplugins/internal.template.php
index fdae24f3..c00b9d63 100644
--- a/libs/sysplugins/internal.template.php
+++ b/libs/sysplugins/internal.template.php
@@ -461,10 +461,16 @@ class Smarty_Internal_Template extends Smarty_Internal_TemplateBase {
                 } 
             } 
         } else {
-            throw new Exception("Resource '$this->resource_type' must use compiler");
+            if (is_callable(array($this->resource_objects[$this->resource_type], 'renderUncompiled'))) {
+                $_start_time = $this->_get_time();
+                ob_start();
+                $this->resource_objects[$this->resource_type]->renderUncompiled($this);
+            } else {
+                throw new Exception("Resource '$this->resource_type' must have 'renderUncompiled' methode");
+            } 
         } 
-        $this->render_time += $this->_get_time() - $_start_time;
         $this->rendered_content = ob_get_clean();
+        $this->render_time += $this->_get_time() - $_start_time;
         if (!$this->isEvaluated) {
             $this->properties['file_dependency']['F' . abs(crc32($this->getTemplateFilepath()))] = array($this->getTemplateFilepath(), $this->getTemplateTimestamp());
         } 
@@ -476,10 +482,8 @@ class Smarty_Internal_Template extends Smarty_Internal_TemplateBase {
         if (!$this->isEvaluated() && $this->caching) {
             // write rendered template
             $this->writeCachedContent($this);
-            if ($this->usesCompiler()) {
                 // cache file may contain nocache code. read it back for processing
                 $this->rendered_content = $this->smarty->cache_resource_objects[$this->caching_type]->getCachedContents($this);
-            } 
         } 
     }