Rename the php.ini-recommended file to just 'php.ini'. Go through and configure all of the settings (read the notes/comments for help on what they do).
Next, place php.ini in "c:\windows" (or "c:\winnt\" depending on which version of Windows you are on).
Next, copy "C:\php\php4ts.dll" to "c:\Program Files\Apache Group\Apache\modules\". Do the same with "C:\php\sapi\php4apache.dll".
Now, open Apache's 'httpd.conf' file (in the conf dir of the Apache folder), and find the "LoadModule" section, the end of it probably looks like this:
LoadModule usertrack_module modules/mod_usertrack.so
LoadModule unique_id_module modules/mod_unique_id.so
and so on. After the last "LoadModule" line, add this:
LoadModule php4_module modules/php4apache.dll
Next, scroll a bit to find the "AddModule" section, the end of it probably looks like this:
AddModule mod_so.c
AddModule mod_setenvif.c
and so on. After the last "AddModule" line, add these lines:
AddModule mod_php4.c
AddType application/x-httpd-php .php
AddType application/x-httpd-php .php3
AddType application/x-httpd-php .php4
AddType application/x-httpd-php-source .phps
Now, normally webservers look for certain filenames as "index" files, such as index.html, default.htm, and so on. If you'd like to add "index.php" as a possible index filename, search the entire .conf file for the keyword "DirectoryIndex" and you'll probably find lines like this:
DirectoryIndex index.html index.htm default.html default.htm index.cgi
Simply add a space after 'index.cgi' (or the last file listed) and add 'index.php' (without the quotes, just like all of the other filenames).
Now, you should be done.
EDIT: This installation procedure was intened for PHP 4.x.x and Apache 1.3.x only. If you have different versions, post them to make sure you have the right set of instructions.