Alright, I am editing it with notepad ++, I set the encoding to UTF-8, and saved to server. Haven't followed through with the tutorial mentioned above, but just checked if the error apears again. It does, here is the link to the page: http://nold.si/197-tekstil-in-obutev.
http://speedy.sh/CsXJg/category.tpl here is the saved file.
Please advise, I think I have done it correctly. I have turned off the force template setting and smarty while doing the editing this time, don't know if it makes any difference.
Regards,
PARANOiA