If your clicking on the files in windows file manager - your not pulling via http (web server). Am assuming that you are using http://127.0.0.1.
Try doing a winipcfg, or an ipconfig and using your real IP address instead of the localhost.
Or pull the pages up in IE succesfully, and cut and paste the URL into Netscape.
Another one to do is modify your hosts file on your machine and create your own version of a domain name and have it point to your web server. That way you can stuill be online and do a www.whatever.com and pull the files from your local PWS.
If your a windows guy, get easyPHP. Its absolutely the best one click install PHP/MYSQL/Apache thing I have ever seen. Works great and does a flawless install on a windows box. Am using it on XP and have not found a glitch yet. Great for local development.
Hope this helps