menu items not using alias

Hi,

I am facing the same issue with Zen as described in this thread:

http://drupal.org/node/229519

I tried the suggested solution, namely having the following function in template.php
I did find it in zen/template-menus.php, but no luck, any ideas?

<?php
function phptemplate_menu_item_link($item, $link_item) {
  return l($item['title'], drupal_get_path_alias($link_item['path']), !empty($item['description']) ? array('title' => $item['description']) : array(), isset($item['query']) ? $item['query'] : NULL);
}
?>