At last eureka! got everything to work! i followed this http://www.ricocheting.com/server/php.html
But prior to that i uninstall php, mysql, and apache. also i removed the folders inside program files and also inside application data related to the apps.. which are resided inside documents & settings -> your username -> application data and also at favorites(links) application data.. in favorties the application data folder is hidden so u may wana turn on the show hidden folders in folder options at control panel.
U MUST delete the apache folder from program files and the application data prior to doing anything or else you will get the problems i've got! which drived me nuts for two days..it seems some older versions of different software were conflicting with each other..
Also please remove libmysql.dll and php.ini files from the windows dir or system32 dir prior to installation.. hope this helps u guys who are having the same problem