Ok, the last patch posted at the trac works as the use-case you described.
http://trac.turbogears.org/turbogears/attachment/ticket/536/template_as_a_string.2.patch It's even less "magical" and less code... should read those specs better next time ;) hope it helps, Alberto P.S. If it gets better tested, theres more demand and Kevin approves it I'll commit it to the trunk.
