I am sorry I did nto see this earlier, it deserved a more rapid response than this. OK get adventurous..
1. Prepare to dump Xampp altogether... Backup your
MySQL Moodle
database - use
phpMyAdmin in the Moodle server folder, copy that backup somewhere safe.
2. Install Apache and PHP as separate installs.. if you go to
this link it will tell you how to do it.. Install My
SQL at this point, creating a UTF-8 collation not the Developer's database Sulinski recommends.
Download and install phpMyAdmin making sure it all works before doing anything else.
3. Copy all your Moodle files over to the htdocs/moodle19 folder.
4. Copy your Moodledata folder to the same level as the htdocs folder.
5. Restore your backup of your MySQL database to the new database, using phpMyAdmin. Make sure all the links in the backup now reflect the new Apache. There is available an update sql statement you can run in phpMyAdmin to do this in one hit.
6. Check the config.php file and make sure that they vars all match the new setup.
DO NOT delete the old install until the new is running properly.
The Moodle in Xampp is the same as a standard Moodle, there is no particular coding that is different, just the Xamp is the shell.
You can break Moodle out easily enough, if you have the time to do it.
What you can also do is simply install a new Moodle using Xamp to a new folder and restore your backups. Less palying around, but if you install Apache,
PHP, MySQL and phpMyAdmin, then a standard Moodle install to, say Moodle19, they you can download and install Moodle2.0 to say Moodle2 folder. If you go to Administration > Server > Session Handling, chanign your cooki prefix to 10 and 20 respectively, then you can enjoy the best of both worlds...