1/ The built in server just uses a regular PHP distribution. You can modify the settings for it by editing the PHP.INI file in either the
php (php 4) or the
php5 folder of the PhpED installation location. I think the mysql extension is enabled by default so normally no changes should be necessary.
2/ Checkout
this (comments should help) or take a look at the
mysqli extension when you are using PHP5 (the mysqli extension is not enabled by default!) for initial connection. Take a look at the query functions for the rest.
3/ Make sure you check the return codes, should get you a long way already
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