Description:
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Running PHP under Apache 1.3.33 as a server module, I couldn't take advantage of using environment variables.

As described at http://ru.php.net/manual/en/install.windows.manual.php:
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Previous editions of the manual suggest moving various ini and DLL files into your SYSTEM (i.e. C:\WINDOWS) folder ... the preferred method for installing PHP is to keep all PHP related files in one directory and have this directory available to your systems PATH.
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Reproduce code:
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My PHP installation resides in "c:\program files\php" along with php.ini, php4ts.dll and other standard for PHP files and folders.

System environment variables are:
Path = c:\program files\php;c:\program files\php\dlls;c:\program files\borland\VBroker\bin;C:\Program Files\Borland\Delphi7\Bin;C:\Program Files\Borland\Delphi7\Projects\Bpl;%SystemRoot%\system32;%SystemRoot%;%SystemRoot%\System32\Wbem;C:\Program Files\ATI Technologies\ATI Control Panel

PHPRC = c:\program files\php

Actual result:
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Apache founds php4apache.dll in sapi directory, but

1) Apache does not start until php4ts.dll is in "sapi" or "windows" directory or in the same one with apache.exe.

2) When php4ts.dll is in any directory from ones specified above, Apache is launched but php.ini is not processed until resides in "windows" directory or in the same one with apache.exe. When php.ini is not processed, phpinfo() claims "C:\WINDOWS" as "Configuration File (php.ini) Path".

3) When php4ts.dll and php.ini are found and there are extensions which require additional dlls, these dlls are also not found (although, they really are in "dlls" directory and the directory is in Path). For every extension the "Unable to load dynamic library" message pops up with the right path to the extension. (I use domxml, gettext, mhash and xslt)