PHPEd 3.0, cannot surf to the file internally

[kalkama]

Just installed PHPEd 3.0 from nusphere. Its a good software but I am stuck on a very stupid point. I am sure that my settings are not correct and somehow it will show me a page correctly but the relative paths i have in the code doesn't work. For eg. I enter username and pass in a login page that has relative paths for ADODB, I get this:

Warning: Failed opening 'C:\Inetpub\wwwroot\login.php' for inclusion (include_path='.;c:\php\includes;C:\PROGRA~1\nusphere\phped\include_lib') in Unknown on line 0

If I surf to a page locally i get this name for that file http://localhost:8080/file:/C:/Inetpub/wwwroot/phpinfo.php?PHPEdHidden=41601

It should be just http://localhost:8080/phpinfo.php?PHPEdHidden=41601, but somehow it seems to read the whole directory structure too.

My settings for the built in server are:
port: 8080
home dir: C:\Inetpub\wwwroot
default doc: index.html,index.htm,index.php,index.php3
file extension: .php exec: C:\PHP\sapi\php4isapi.dll

Server mapping: localhost:8080/rebcan
path: C:\Inetpub\wwwroot\rebcan

File I try to surf to: C:\Inetpub\wwwroot\rebcan\admin\index.php

Please let me know what setting within this I have to change to get it to work