How do templates work

[marklar]

Hi

Bit of a vague question I know. I know php but don't get the code used in the templates, is there a file that parses it into something else, is this another form of php (like you get with ASP) or is it another language entirely.

If someone could give me an example where a php file builds a page using a template with conditions and variables, that would be great. vB is a bit too complex for me to learn from.

:I