Dear Sir ,
first check whether www service is running or not in ur NT.
second try to open a local file with ur browser , if it is working and ur able to browse the localfiles ,then i think the browser is working fine .
if u type http://localhost/ and ur getting "access forbidden" then it is not a error but it means directory listing not allowed not allowed.
if ur giving some filename like http://localhost/new/new.htm
then in ur server u must create a virtual directory on name "new" .
if the new.htm contains some executable scripts then u must give execute permission to that file.

if my answer dosenot stisfy ur requirement , feel free to ask queesetions
my emial is agiridhar@hotmail.com