I was using the standard one for 1.7.7
But after that I saw there is a new one and I downloaded it. Still the same problem.
The solution was to set all the paths correctly to start manually
d:\xampp\mysql\bin\mysqld --install
And after couple tries everything is normal now.
I was even able to install PEAR with no problem just reminder
RUN CMD AS ADMINISTRATOR....
I saw that there are some problem when I run php.exe
"The procedure entry point php_set_error_handling could not be located in the dynamic link library5ts.dll"
And PHP is ranting about problems with: mcrypt,mime_magic,ming,mssql.
The other one is:
" This Application has failed to start because php_pdo.dll was not found. Re-installing the application may fix this problem."
CMD error: "PHP Start up could not load dynamic library: \xampp\php\ext\php_pdf.dll"
Some more errors: zip,zlib_filter,ps,paradox,
And that is about the errors.
But still... everything is working perfectly.
Probably it needs some more housekeeping before next release.