Is it saving the download page as PHP, or changing the ZIP file to PHP?
If it's downing the page vice the ZIP file, try right clicking the ZIP file link and saving target as.
IE not working? Hmm... must be another MS corruption. If downloading and installing a fresh IE601 from MS doesn't fix it, but other browsers work, you can either spend lots of time in MS Knowledge base to patch a second-string browser or just ignore it and use Netscape, Opera, Mozilla, or other more secure browsers.