Your Apache configuration file, httpd.conf, probably does not allow anything to be overridden in a .htaccess file...

It much easier to find/change the following line in httpd.conf to do this -

AddType application/x-httpd-php .php .html

http://forums.codewalkers.com/server-administration-84/getting-php-to-parse-on-local-server-84452.html

AddHandler application/x-httpd-php .php .htm ... worked for me (directory: xampp/apache/conf)

Get PHP to parse on local server

server

PHP