Smarty can download from http://www.smarty.net/download
Smarty can installed to our system in many ways. Personally I like to follow http://www.smarty.net/quick_install. The main focus is Smarty.class.php file have to be populated in index.php.
Smarty v3's library files include 2 direcorties (plugins, sysplugins) and 3 files (debug.tpl, marty.class.php, SmartyBC.class.php).
Smarty need four directories to work: templates, templates_c, cache, configs. These are located in server.
Here is the question for 'Security'. We can place Smarty library files outside of the server. In this way we can ensure more security for our website.
Following is a paragraph from "Smarty PHP Template Programming and Applications" by João Prado Maia, Hasin Hayder & Lucian Gheorghe -
Securing our Smarty Project
In my experience, I have noticed that a lot of people who work with Smarty or other template engines don't realize the importance of the fact that their code is intended to be for their eyes only. While .php files are configured in Apache as applications and they are passed to the PHP interpreter when accessed from the Web, templates file with the .tpl extension are not. In Linux, chmod can do a good job with the Smarty folders, but it can cause problems when a designer uploads the files via FTP or HTTP.Since we named the Smarty folders like their defaults, if we put a file with the .tpl extension in the templates folder (for example, index.tpl), if you write in your web browser address box http://localhost/templates/index.tpl you can see the file with the actual code in it.Since everything is done internally by Smarty and PHP, there is no need for the web user to access files in any Smarty directory (even if the compilation directory contains PHP files, they are never addressed directly from the Web). Considering these facts, I think that the best way to secure the project is to deny everyone except the localhost access to Smarty folders from the Web.