@bobbyr There is no editor that can handle pages with server side code like plain HTML pages. Reason is pretty simple: page is generated on execution. Just forget about that. I don't see anyone here mentioning Zend Studio or PhpEd? Strange because they are most popular professional PHP IDEs (not free).
Zend Studio! i love the autocomplete and all the advanced features debugger is excellent i use eclipse for java and i wish eclipse had autocomplete more like zend studio i found php eclipse to be buggy and slow
PHP Designer 2005 works pretty well for coding. The highlighting of bracket pairs is really helpful. Webserver on a Stick (WOS) for testing. I put it on a hard drive partition rather than a flash drive. This is the simplest method I have found to host a testing server locally.
emacs. Nice syntax highlighting, auto indenting, able to edit files on remote servers, and will clue you on syntax errors. But I do like the automatic doc block creator with Zend.
I use phped which was writen by a Turk. Nusphare bought it from 3rd version. It comes with apache server, and identify mistakes in the sentence while you are writing as in visual basic.