[kh99]

I did this short test by creating a plugin using hook misc_start:

if ($_REQUEST['do'] == 'compile')
{
    require_once("includes/adminfunctions_template.php");
    $template = '<if condition="$show[member]">Not viewable for guests</if>';
    echo compile_template($template);
    exit;
}

and the result is:

".(($show[member]) ? ("Not viewable for guests") : (""))."

so it seems like it's working, although I'm not sure how you're supposed to deal with the dots at the beginning and end, I guess when the function is used there are other strings added to the beginning and end.

Anyway, are you using the return value of compile_template()? I don't think it changes the parameter you pass.