Headers already sent

Hi all, I am missing something pretty obvious here. The PHP Manual says "Remember that header() must be called before any actual output is sent, either by normal HTML tags, blank lines in a file, or from PHP.". A simple test case shows otherwise I have the following code test <?php setcookie("TestCookie", 'test'); nothing more nothing less.. only this code in a file I get the output in the browser ("test") AND the cookie is set (verified by live HTTP headers). Any ides on why this is happening ? Linux localhost 2.6.40-4.fc15.i686 #1 SMP Fri Jul 29 18:54:39 UTC 2011 i686 Apache 2.0 Handler Zend Engine v2.3.0, Xdebug v2.1.2 PHP 5.3.6 Kranthi. http://goo.gl/e6t3