hmmm...
I'm not sure that's the right way.
U don't need an html tag in php page, except some times, and when u do, u need to put "echo" before html tags. Php codes don't need "echo" before the code.
To save it as .php, just open the page in NotePad and the the files as filename.php, instead of filename.html

I hope this helps, although there might be other ways of doing it....