ok then, I'll start by answering your questions:
But how do I create php files in windows.
Open a text editor, and start typing :p
PHP code is just text that happens to be written according to a set of rules.
When i type code windows saves it as a text file.
Actually, your text editor (e.g. notepad) saves it as a text file (probably with a .txt extension)
In some text editors, you should be able to change the extension to .php
Conversely, you could make the change outside the text editor.
Also where can I learn the basics of creating a php site.
Borrow a book from the local library, or search the Internet, especially the Web.
You should also visit php.net
The PHP Manual can be found there as well.
Since you're using MS Windows, download the .chm version of the PHP Manual.
Be forewared I have no previous experience with php and have a brief knowledge of html.
Learn HTML first.
Places to learn HTML include w3schools.com.
There's also the HTML 4.01 Specification, which makes for a good read after you have a good grasp of HTML.