in each file that use include i obtain this error:
Warning: Failed opening 'master.php' for inclusion (include_path='') in
d:\inetpub\webs\kt2kcom\index.php on line 

ex: http://www.kt2k.com/download.php

everithing worked fine with version 4.0.5

Fore more info about the configuration of my provider look at
http://www.kt2k.com/script/phpinfo.php

It seems that this problem happens onli if the file that executes the include command is located on the root of the web site

example
http://www.kt2k.com/download.php

http://www.kt2k.com/index.php
and so on
also fopen is affected by the same problem.

If include_path is set to '' (empty) it will do this.
Just commenting include_path in php.ini should solve this.

I'm having the same problem, and my include folder is configured correctly and everything.  One thing tricky I'm trying to do though is connect to a folder BEHIND the wwwroot, for added security.  For example:

http://localhost/products.php has an include statement for the file "../example.php", which works great on the server to which I upload.  But I'm running XP Pro with IIS, PHP, and MySQL installed and running smoothly... except for this.  The error I get is this:

Warning: Failed opening 'file:///C|/Inetpub/include/example.php' for inclusion (include_path='.;c:\Inetpub\include') in C:\Inetpub\wwwroot\products.php on line 4

BUT!  When I cut and paste 'file:///C|/Inetpub/include/example.php' into the broswer... the file comes up okay.  So it can't be the way the file's being called.  Any ideas would be GREATLY helpful.  My point is, it's definately NOT a problem with the include_path set in php.ini.