You'd be much better served by asking that question (or simply reading) on PHP's website. We can support the installation of the calendar... but asking us to support how to setup PHP on your server is out-of-scope of this website.
If you're using Windows as an OS, you can have a look at http://www.php.net/install.windows
Another good quick-to-setup package are WAMP's (Windows-Apache-MySQL-PHP). They include everything you need to start serving PHP on your own machine. Then to support the calendar, you can either install Zend, or just use the ionCube version which you can check if it works by using the Tester Script.
Here's a good comprehensive list - http://en.wikipedia.org/wiki/Comparison_of_WAMPs
In there, I've personally used Uniform Server (I actually used JSAS and MSAS which are based on it) and XAMPP. If you were thinking of using Joomla or Mambo, definitely use JSAS or MSAS as they come with the CMS already installed. But if you want to build your own site from scratch, I highly recommend XAMPP. XAMPP also has the newest release as of Christmas Eve.
If you're running Linux, then look for a LAMP tutorial for your distro. I can't cover all of those as there are as many distros as there are hairs left on my head (not that many but just too many to count) 
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