I didn't see any other post with this same exact issue. I created a clean install of XAMPP 1.7.2
I'm running XP I do have "127.0.0.1 localhost" in my hosts file. Nothing is blocking port 80. Apache is running on it. I am able to see php apps on localhost/ e.g. "http://localhost/phpmyadmin/" comes up fine.
But when I try to open "http://localhost/xampp/" I get the "application/x-httpd-php" prompt which doesn't know what to do with the PHP file and wants to DL the source.
If I navigate to "http://127.0.0.1/xampp" I am able to see the page just fine. Which makes this more confusing. I can ping localhost, other pages work, why not this one?
I'm guessing its an httpd.conf issue or one of its includes. Please help.