Mine

<ul id="menu">{strip}
	{foreach item=menu from=$menu_items}
	<li><a href="?id={$menu.cat_id}">{$menu.cat_nume}</a>
		<ul>
		{foreach item=submenu from=$submenu_items}
		{if $submenu.cat_parinte == $menu.cat_id}
		<li><a href="?id={$submenu.cat_id}">{$submenu.cat_nume}</a></li>
		{/if}
		{/foreach}
		</ul>
	</li>
{/foreach}
{/strip}
</ul>



************************************************************************************************************


$q_menu = mysql_query("SELECT * FROM `categorii`  ORDER BY `cat_order` ASC");

while($menu = mysql_fetch_assoc($q_menu)){
   	if ($menu['cat_parinte'] == 0) {
   	   $menu_items[] = $menu;
   	}
   	if ($menu['cat_parinte'] > 0) {
   		$submenu_items[] = $menu;
   	}

} // while
$smarty->assign("submenu_items", $submenu_items);
$smarty->assign("menu_items", $menu_items);
$smarty->assign("path", PATH);
$smarty->display(TEMPLATE.'/index.tpl.htm');