embed your code sections with the real {'s within a {literal} and smarty won't eat them up

now if you still have a problem. ie: you need some smarty variables that are passed in to be made available inside that literal.

you do much like you do with php / html combo bombo:

simply do:

{literal}
buncha code
{/literal}
{$smarty_variable_passed_in}
{literal}
more stuff
{/literal}

from your snippet, it doesn't look like you need to have smarty vars in that section, so i'd guess you'd be doing

{literal}
your stuff
{/literal}