You need a php enabled test server to parse your php.
Firstly is the php server you will be using to parse your php on your network or at a remote location.
If its on your network, map a drive to the folder where you store your webpages, i.e. a file with an alias set in (apache) http.conf.
If its on a remote server then the file will be your ftp upload driectory for your web space. Set up your login detail!
I must warn you if you are updating an already created php site, Dreamweaver has a habbit of doing some funny things with your code. always backup everything incase something goes wrong!!
Im not sure about others, but I personally find dreamweaver a pain when it comes to creating a php website, the inserting recordsets and all that stuff it just seems to make a meal out of the code, making it very dificult to know clearly what to edit if you want to change something manually, also there are a few bugs which i just dont have time for!
As far as WYSIWYG editors go, for design its great, but I always like to write my own php code rather than have dreamweaver do it for me, I know where I stand then!!
You asked about books, forget dreamweaver for php, learn to hard code life will be so much simpler for you in the long run believe me.
I have just finished reading \"Building a database driven website using php and mysql\" by \"Kevin Yank\" the book is truely marverlous.
Any general php book, or web tutorial will help you.
All the best
Rich