There's no need to install a server and PHP and then try to coordinate them in order to get them to work together. Script GUI comes in one compact package. It includes a server, which is only available to the built-in browser and is a nice security feature. In addition, it supports CGI, virtual hosts, directory aliases, custom error documents and understands most commands in .htaccess files.
He tell how it works (pretty much just install and go) and how it can be configured to work with virtual hosts. Best of all, it already comes with the latest version of PHP for Windows and can interface with several of the popular databases out there.