3.2 displaying text

Hi,

A fresh install of 3.2 isn’t co-operating. Basically it’s displaying the text file instead of actually running the code. Firefox displays nothing, chrome displays this:

<?php
/**
 * Front to the WordPress application. This file doesn't do anything, but loads
 * wp-blog-header.php which does and tells WordPress to load the theme.
 *... (there's more, mut you get my point)

Would this be an XAMPP issue?

Thanks