Apache index.php problem (Ubuntu)?

Just set up Apache 2 and PHP 5 on Ubuntu 10.04. This is a testing server on my development machine.

The problem is - when I navigate to a directory name such as http://127.0.0.1/mysite/ Apache sends the PHP file instead of parsing it. If I go to http://127.0.0.1/mysite/index.php it works fine.

The folder are on an NTFS partition (dual boot Windows), but I had the same problem when I moved them to ext2 temporarily. A separate folder that was created on the ext2 partition worked fine, even though they had the same owner and permissions.

Thanks
 
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