OK -
XAMPP is working if you can get to the XAMPP Welcome page and use the tools there.
I suggest you DL and install the new Control Panel. They update it from time to time, and the most current version's link is in that topic
It has a different name xammp_control3.exe and it belongs in the root of your XAMMP folder. You can just 'Send to Desktop' to make a shortcut for it. It won't interfere with the XAAMPP installation, nor will it over-write the original COntrol Panel (very flawed).
As to what's wrong with the Dreamweaver Live preview, you might search on that - the problem is likely a Dreamweaver configuration issue. What version of Dreamweaver are you using??? I don't know if you have registered on Adobe.com, but they have awesome support forums. I have a LOT of their stuff (yes very expensive) but you also get a lot of support as well.
There have been a string of posts about Dreamweaver here, just type 'Dreamweaver' in the search box right by New Topic at the top of this board. It returns 20 pages of posts.
That said, and in my opinion only - Dreamweaver is NOT a good tool for developing in PHP. It was developed as Graphic interface when PHP was effectively always embedded in otherwise static HTML pages, that is no longer the paradigm. In fact, the 'paradigm' is to build code/logic that is separate from the presentation layer (all done in CSS). If you just want to do a few little things for yourself ONLY, it won't make any difference. If you want to learn to 'build stuff' with an eye to becoming a real developer - both Dreamweaver and Microsoft's Expression/Sharepoint Designer are dead ends for PHP. I know, I own both, LOL.
I would get an opinion from others before you invest a lot of time on it.
Good Luck