Yes, and that is addressed in this FAQ entry..
http://www.dew-code.com/content/view/14/25/

The file named "directory" is the actual script, it just lacks the .php file extension

The included .htaccess (not the one in /admin) tells your web server to treat the "directory" file as a PHP script.

Depending on your version of Apache and how it is configured, the syntax in the .htaccess file will be different

For my server it's

ForceType application/x-httpd-php

for yours it might be

SetHandler application/x-httpd-php

You can try each variation by un-commenting one directive at a time in the .htaccess file and refreshing your web browser.

The FAQ link above also has other options that might work for you.