.htaccess if for Apache regardless of where it runs (and some other servers too).
If you are running your own server and have access to the httpd.conf file, then you can set the .htaccess file to any filename you want. In Windows, since it doesn't like filenames with nothing before the period (like .htaccess), you may wish to change this to ht.access, since it will give you fewer troubles. Then you change your httpd.conf file to have it parse files of whatever extension as php files. The PHP installation instructions have exact details.
I'm having trouble getting GD to work. When I take a test PHP script to create an image, I load it up in a browser and get one of those image boxes- you know with a border and it just says "image". That makes me think that I'm close to getting it though.
I have uncommented the php.ini file for the php_gd.dll, moved the php_gd.dll to the Apache folder restarted the server and oh yeah, changed the: extension_dir = C:/FoxServ/php/extensions in php.ini.