Running PHP files. Basic help

I am very new to the PHP language, and am trying to start some tutorials.
I have MAMP installed, and running, i am not sure if i need that? Its a php server, which i believed was necessary.
I am trying to run this example, http://www.kubelabs.com/phpdugg.php
I have in unzipped, and i believe, i have followed these instructions correctly:

1) Download PHPDugg from the kubelabs site
2) Extract the zip file onto your computer
3) Upload all of the files that were in the zip file via ftp to your web host
4) Set the chmod permisions on the includes/config.php file to 0777
5) Open the url where you uploaded the files in your web browser, for example http://demos.kubelabs.com/PHPDugg/
6) You will now be presented with the installation wizard

Except i zipped it to my local hdd. Than i ran in the terminal 'sudo chmod 0777 config.php,' but when i access file:///........../PHPDugg/ it just shows the plain list of files available in that directoy. what am i doing wrong?