What format is the PHP template in - pear .tpl or what?
If you want to run PHP scripts on your PC you'll need a web server running (Of course I recommend apache). You'll also need a database server (I would go for MySQL) and to administer the database you should probably use SQL yog.
By the way this set up is completely FREE.
It can be tricky to configure an Apache/MySQL/PHP server, so I strongly suggest you donwload a preconfigured 'package' such as
phpdev