I'm having the exact same problem. I'm running other .php applications from my website, so I know it's set up/capable. I can't get to setup.php either. It gives me a similar parse error: Parse error: syntax error, unexpected T_STATIC, expecting T_OLD_FUNCTION or T_FUNCTION or T_VAR or '}' in /***/***/public_html/art/photos/zp-core/lib-utf8.php on line 240
I've tried reuploading all files involved, including the setup.php file, just in case. There's not much more info I can provide.. I downloaded the files, then transferred them directly into my folder (photos) and then tried to enter the setup screen... and that template-functions.php on line 4407 parse error popped up instead.