That was it! Had to change the url’s from localhost to the server name/ip. Thanks.
Reinstalled IIS, PHP, and wordpress, and all is well.
Discovered that the problem is PHP. Htm files work. Just nothing PHP.
I reinstalled wordpress and PHP with the same result. Using PHP-5.3.1, wordpress 2.9.1 and IIS 7.0.
Any suggestions?
This is a local installation.