The SCORM 1.1 spec dictates that an active object is required to fulfill the roll of the LMS Run-Time Environment. Where this object is does not matter as long as it is accessable via the standard DOM, so it can be in a Frame or another browser window, as long as it can be found by the SCO in the specified manner... but it must be an object (using either the object or embed tag), it must have an active Run Time Environment and it must provide the 8 function calls to get set init and what have you.
PHP as typically used (Apache Module) does not lend itself to this task. It cannot be made to display in an object or embed tag, because it is a server side script, not a binary browser plug-in and it does not provide it's own Run Time Environment, it uses Apaches and only for the duration of it's execution. That is why most LMS RTEs are written as a Java Applet, though it is possible to create one with Flash5.
It is possible to have a PHP script act as the server interface to the LMS RTE however and provide the required database connectivity to record/retrieve your test results and course status from the Database.