For starters you are using Windows 7, and that means you are using IIS, maybe. Is IIS even turned on? Best bet first is to go into Control Panel\All Control Panel Items\Administrative Tools - System Configuration and make sure that IIS is turned off and does not run at all. You can also turn off User Access Control, and you need to be in Administrator mode.
Next: Download and install "httpd-2.4.3-win32.zip"Apache Server. This is simple and straight forward and requires no additional angst to get it going. When installed, open your browser and type it the address bar: http:\localhost\ and it should come up with a file that says "It works" or similar.
Next: Do a search for PHP downloads and download the latest version of PHP. Now this is where it gets really sucky. You need to look for and find the PHP version: php-5.4.10-Win32-VC9-x86.zip or later. It has to be Win32-VC9 and you do the zip NOT the msi package. Unzip it and copy it to the same level as the Apache server. THEN go to Control Panel\All Control Panel Items\Advanced System Properties\System Properties\Advanced\Environmental Variables and, select Path and the Edit, add the path to the PHP folder in the Path statement. That should read: C:\php;C:\php\ext (you need both and if you put them on the C:\otherwise whatever drive you use). Make sure you got them both at the end of the Path Statement
Once you have done that, go into the PHP folder and look to see if there are files there named php5apache2_2.dll, php5apache2_2_filter.dll and php5apache2_4.dll. If not, then look for them and download them into the root PHP file. THEN: Go to the server and find the file httpd.conf. Open it in a text editor and look for the section marked: Dynamic Shared Objects (DSO) Support and add in the lines LoadModule php5_module "C:/php/php5apache2_2.dll"
LoadModule php5_module "C:/php/php5apache2_4.dll" at the end of that block.
Next: in the httpd.conf file look for the variable marked: DocumentRoot "C:/server/htdocs" and make sure it has the right path in it.A few lines down you will find a line that should read <Directory "C:/server/htdocs"> or the same as your actual path, if not then add it in.
Then find:
<IfModule dir_module>
DirectoryIndex index.html (- and then add "index.php" after the html, no brackets, no commas, only a space.)
</IfModule>
then find
AddType application/x-compress .Z
AddType application/x-gzip .gz .tgz
After that, add in the lines:
AddType application/x-httpd-php .php
AddType application/x-httpd-php-source .phps
Right at the end of the file, after the </IfModule> add in the line:
PHPIniDir "C:/php/"
This means your sever and PHP will talk. Now you have to get PHP ready to talk to Moodle.
The Installing PHP for Windows Moodle Docs will help you here.
The phpinfo.php trick is really handy to find if you have configured PHP properly.
Download and install MySQL. This is simple too, but remember you need to respond to some possible options correctly. Moodle needs a collation of utf-8_unicode_ci to work properly, and you do not need a developer database. Make sure you set your MySQL root identity correctly.
You can then install Moodle and it should run first up
As an alternatve, if you don't want too play around with this technology, or deal with the angst of setting up a Moodle from scratch, you can look for and download the Moodle for Windows, unzip it and run the Xampp installer. If it is not working then you need to make sure IIS is not operating and turn it off. Best to uninstall it actualy and make sure nothing, including skype if you have it, is listening in to Port80. All too easy, but if you are only doing this for a short term, the Windows Moodle package is OK, for the longer term - build your own server.