problem with domxml, sablotron setup

I’ve been checking through internet including this mailing list for an answer and nothing has helped so far. When I try to sablotron processor I get "XML parser error 4: not well-formed (invalid token)". When I run this same script on my web-host service provider’s set up everything works fine. It seems something is messed on my setup, something like sablotron processor does not find expat parser. When I test domxml I cannot even open the xml file, and that also does not happen when I test the script on my web-host service provider. Could the problem be caused by apache 2 version? I seem to have everything else setup right. Thanks for your input, your advice is most needed and appreciated. The following is my set up. Apache Version: Apache/2.0.49 (Win32) PHP/4.3.6 Server API: Apache 2.0 Handler Server Root: C:/Program Files/Apache Group/Apache2 extension_dir: c:\php\extensions document_root: C:/public_html