Well, Marco does have a point. PHP 5.3.0 is still in the beta stage, beta 1 to be exact. It hasn't even made it to a RC yet. That's not to say that it isn't stable or usable though.
Unless you really have a need for namespaces or any of the other new features, you would be better off with 5.2.8.
As far as your 'error' is concern, using a reference, =&,to assign a variable to a new class/object? seems to throw up E_DEPRECATED (which was added in 5.3).
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