1) It's just a way to setup files to be included by the app. It should read something like:

php_value include_path ".:/usr/lib/php:/usr/local/lib/php:YOURDOCROOT/run/Lib/php"
php_value log_errors 1
AddType application/x-httpd-php .php .phtml DirectoryIndex index.phtml index.html

Change YOURDOCROOT in the above, to the root directory of the site you are putting the app on

2) It's a less common name for .php files

3) You can go into windows and add .phtml as a filetype to be edited with dreamweaver, or just rename it to .php while editing, and rename after.

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