PHP 5.3 introduces various new tags and deprecated certain PHP functions which were being supported till ver 5.2. We recently upgraded the PHP version on one of our servers to 5.3 and found that it broke one site which was built on ver Joomla 1.0.x. Following is a simple update to ensure that the site still works on the new version of PHP 5.3.x.

Edit the Function.php file under  your Joomla directory on /public_html/includes/Cache/Lite.
Replace:
$arguments = func_get_args();

with

$arguments = func_get_args();
$numargs = func_num_args();
for($i=1; $i < $numargs; $i++){
$arguments[$i] = &$arguments[$i];
}

in includes/Cache/Lite/Function.php. It will fix compatibility view issues for joomla 1.0.x on php 5.3.x and this resolved the issue for us.