[eluser]WanWizard[/eluser]
What is generating the error? Smarty code?
If you're still using Smarty2, your upgrade to 3 is overdue (which does support PHP5 fully). Note that this means changes to existing templates, as the syntax has changed.
If you want to keep using Smarty2 you can only fix it by code modifications. This might be a complex task, because you're not only facing the problem of this error message (which is not that difficult, as all objects are now passed by reference), but the fact that pre PHP5, when you passed an object to a method, PHP would made a copy. If the code used this "feature" to make changes to the object that should stay local within the method, you're in deep trouble since now the global object will be changed to. So you need to find these methods, and use clone() to make a copy manually.
Good luck.