I have downloaded 'Smarty 3.1' and unzipped the libs file to the 'Wamp' document root c:/wamp/www/ and placed it into dir/folder 'Smarty'.

In the document root I have also created another dir/folder named 'myapp'.

'Smarty/' holds the unzipped 'Libs' file contents and 'myapp/' has 4 empty dir/folders in it plus 2 .php files:
The folders are: templates/, templates_c/, cache/ and config/,
the 2 .php files are myapp/smarty.php and myapp/index.php.

//Use the absolute path for Smarty.class.php
$base_path = (dirname(__FILE__)); //Line 3 possible cause
require ($base_path.'/Smarty/Smarty.class.php'); //Line 4 line noted in the error return
$smarty = new Smarty();
$smarty->template_dir = $base_path.'/myapp/smarty/templates';
$smarty->compile_dir = $base_path.'/myapp/smarty/templates_c';
$smarty->cache_dir = $base_path.'/myapp/smarty/cache';
$smarty->config_dir = $base_path.'/myapp/smarty/config';

$smarty->assign('test, 123');

There is also a .tpl in the myapp/smarty/templates folder:

on opening myapp via wampserver localhost the returning error is:

Warning: require(C:\wamp\www\myapp/Smarty/Smarty.class.php) [function.require]: failed to open stream:
No such file or directory in C:\wamp\www\myapp\smarty.php on line 4

Line 4 is:
require ($base_path.'/Smarty/Smarty.class.php');

The 'Smarty' version used with the book was pre 3.1 which would mean a slightly different file structure.