No need to chmod if using windows.
If I remember rightly you need to change these lines in backend/functions.php
PHP Code:
require_once("mysql.php"); //Get MYSQL Connection Info
require_once("config.php"); //Get Site Settings and Vars ($site_config)
require("tzs.php"); // Get Timezones
TO
PHP Code:
require_once("backend/mysql.php"); //Get MYSQL Connection Info
require_once("backend/config.php"); //Get Site Settings and Vars ($site_config)
require("backend/tzs.php"); // Get Timezones