I'm not a Windows guru so don't know the specifics, but it sounds like the web server config does not "know" that .php files need to be sent to the PHP processor. You might want to check the "sticky" posts here (this site's sister forum PHPBuilder.com): http://phpbuilder.com/board/forumdisplay.php?f=7
PS: Could it be something as simple as having to restart the web server after making config changes?
"Please give us a simple answer, so that we don't have to think, because if we think, we might find answers that don't fit the way we want the world to be."
~ Terry Pratchett in Nation