I have been working on Windows XP all the time.
To develop PHP at work, I use Nusphere PHP Ed for Windows. It has many useful features, such as debugging and code mining, but I found that it is a little unstable for software that costs money. However, if you don't mind it freezing so often and wanting to pay for it, this is a great PHP IDE for Windows.
My personal favorite is Eclipse with the PHP IDE project plug-in (there are several options), if you use it, it doesn't matter which OS you use (it works on PC, Mac and Linux).
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