Clean URLs
Well, do you have any idea as how to enable it? I wouldnt ask you if I know it. Please let me know how to configure (which file?).
Sorry, I'm not familiar with the intricacies of XAMPP. You'll probably get more accurate information by searching google for it.
Well XAMPP is just like any other sever with Apache, PHP, MySql,PSql and so on. I have found out how to enable the module rewrite through Google. But surprisingly it was already enabled. I decided to re-install so I started http://localhost/prosepoint and this time I have landed in Drupal.
Now I re-installed XAMPP and this time I did only a single change in the configuration files. I changed the max_execution_time = 600 in php;ini. But I didnt do any other changes mentioned in your reconmendations like AllowOverride or session.cache_limiter. It worked.
Thank You

You have to enable the module mod_rewrite. It's a standard component of apache, so it should already be part of XAMPP. You only have to configure it to be available.