problem

Condition:
- PHPtemplate.engine functions properly. (2007 version)
- node.tpl.php can execute functions from template.php
- Block Region page refuses to display updated regions.
- mytheme_regions() syntax is correct.

Questions:
- How is this even possible?
- Has someone tampered with the core?
- Human error?

Solution:
To be determined. I will write a more lengthy article about this, once I get some sleep.