1) I was confuzeled (ie wrong). There is a directory in Moodle that is called pear and evidently will handle any code that requires it. My mistake. I was thinking of curl, where on some localhost complete install packages you have to change the php.ini file admin/environment/php extension/curl and remove the ";",
2) No that should work fine. I always strongly recommend installing a localhost for anyone who is tinkering. Your FTP program can pull folders and files from there. I create a certificate on my locallost, then copy the required folders. I do not use Windows 7 (yet) but that should not be an issue. A file is a file.
People like Raymond are a BIG help. My my English uncle used to say "I am a simple man with my rubber boots on so I can muck about." We all bring difference experiences to the Moodle community. Remember that others maybe in your shoes and these posts may help them, and we will never know