Can't get PHPLib to include files or parse PHP code

[Robo]

I have a file call view.php, which has the following:

<?php

switch ($page)
{
        case 'News':
        $display = 'news.php';
        break;

        //--more similar cases...
}

include ('template/template.inc.php');

$t = new Template();

$t->set_file('layout','layout.inc.php');
$t->set_var('content',$display);
$t->pparse('output','layout');

?>

news.php is a separate page that contains news items. Right now, view.php only shows the words "news.php" instead of the actual file, how can I get PHPLib to include the actual file instead?

Also, layout.inc.php contains a user comments box similar to the one at geekarea.org, I did that by including the file rave.php in it <? include('rave.php') ?>. When I open layout.inc.php, no problem, it includes rave.php, grabs the top 5 comments and shows them. But in the other pages, it doesn't parse the PHP code, the actual source says <? include('rave.php') ?>

How can I get PHPLib to include files, and parse PHP code?