Ok the only thing I can suggest is that you remove the PHP installation, and start from scratch!
Search for any copies of php.ini that may be in the windows or winnt folder and delete them.
I would also suggest that you get a newer version of Apache, the one you have is very old, I can't even find a win32 version of 1.3.14 on the Apache archive site.
Assuming you now have a newer version 2.2.? of Apache, uninstall the old one through the Add/Remove mechanism.
Then remove the Apache folder including the httpd.conf file which is usually still there after uninstalling.
Now install Apache (Here I would suggest that you install to c:\apache rather than to the default c:\program files\apache).
Check that Apache is working before continuing.
Then unzip php to a folder, create a php.ini in the same folder, I will assume that it will be C:\php, don't change anything in it just yet.
Now open the Apache httpd,conf file for editing, and paste the following into it (I have used the code for a module installation)
LoadModule php5_module "c:/php/php5apache2_2.dll"
AddType application/x-httpd-php .php
configure the path to php.ini
PHPIniDir "C:/php"
Save and then restart the apache server.
Now open your php.ini file for editing and look for the line
doc_root =
change it to
doc_root = C:\apache\htdocs
if you have installed apache anywhere else then change c:\apache for the directory you have used.
Save and then restart the apache server, again.
If all goes as it should you should now be able to parse php files through your 127.0.0.1/ address.
You can now go into you php.ini file and change the settings to suit you. Like enabling extensions and setting your extension path.