First of all this is not an XAMPP for Windows issue but rather your understanding of DW and so reading the manual would be a good place to start and asking your DW class and also the Help button within DW for a context help page.
But here is what I interpret your questions to be.
Should the MySql database be in the local root folder of my website?
No. The database is in the correct location for MySQL to find it.
Just make sure, using phpMyAdmin, that the Database has the correct credentials, a User for that database and that User has a Password and privileges to access it - check using the Privileges menu item and create where needed.
This Database info will need to be entered in the
MySQL Connection edit boxes in DW so DW can connect to it:
Connection name - a name for this connection in DW
MySQL server - localhost
User name - database user name set in phpMyAdmin
Password - ditto
Database name - the name of the database in phpMyAdmin.
I am unsure how to set up the Site definition for: Local Info, Remote Info, and Testing Server.
Pressing the Help button will give you some ideas.
I have MX 2004 which may be slightly different.
Local Info:
Site name - the name you will be calling your site in DW for example
mysite
Local root folder - the full path location of your site files, can be anywhere, but for XAMPP should be a sub directory of htdocs unless you set up a VirtualHost.
For example - C:\xampp\htdocs\mysite
Refresh local file list automatically - Ticked
Default image folder - a sub directory of your site's files usually named 'images'.
Example - C:\xampp\htdocs\mysite\images
hTTP address -
http://localhost/mysite - for testing this will work.
This address also can be your domain address when and if you set up your domain name at a registrar then in a VirtualHost container - search this forum for vhost.
Cache Enable cache - Ticked
Remote info:local/network
Can be
none or
local/network
This is mainly for when you also have a remote hosted web site then your site can be synchronized with your remote site.
Testing Server:
Server model - PHP MySQL
Access - Local/Network
Testing server folder - same as Local root folder in Local Info
URL prefix -
http://localhost