HELP!!! CakePHP core could not be found

BEGIN ERROR:

get_include_path /var/www/html/rembrandt/bookstore:/var/www/html/
rembrandt/bookstore/app/:.:/opt/lampp/lib/php

Warning: include(cake/bootstrap.php) [function.include]: failed to
open stream: No such file or directory in /var/www/html/rembrandt/
bookstore/app/webroot/index.php on line 100

Warning: include() [function.include]: Failed opening 'cake/
bootstrap.php' for inclusion (include_path='/var/www/html/rembrandt/
bookstore:/var/www/html/rembrandt/bookstore/app/:.:/opt/lampp/lib/
php') in /var/www/html/rembrandt/bookstore/app/webroot/index.php on
line 100

Fatal error: CakePHP core could not be found. Check the value of
CAKE_CORE_INCLUDE_PATH in APP/webroot/index.php. It should point to
the directory containing your /cake core directory and your /vendors
root directory. in /var/www/html/rembrandt/bookstore/app/webroot/
index.php on line 101

END OF ERROR

I have tried everything under the sun to get this to work.. if anyone
can help Id be more than happy to buy the person something nice on
Amazon.com

I am getting this message when trying to run a FRESH cakephp 1.2.5
install on XAMPP with php 5.3 ..

After Googleing for many many hours I also see that hundreds of sites
out there have the exact same problem and I found no solutions to this
problem. It appears that my include path is not being recognized by
php, however I have tried:
1. setting the cake paths (both the root of the cake install and the
app dir) via the php.ini
2. overriding the CAKE_CORE_INCLUDE_PATH, CORE_PATH and pretty much
every other variable

NOTE: if i include bootstrap.php using require() and give the full
server path to bootstrap.php it includes bootstrap but then just fails
including the next file down the code.

Here is some debug that i have dumped out in bootstrap.php

CAKE_CORE_INCLUDE_PATH /var/www/html/rembrandt/bookstore

PATH_SEPARATOR :

ROOT /var/www/html/rembrandt/bookstore

DS /

APP_DIR app

ini_get('include_path') .:/opt/lampp/lib/php

ini_set('include_path', CAKE_CORE_INCLUDE_PATH . PATH_SEPARATOR .
ROOT . DS . APP_DIR . DS . PATH_SEPARATOR . ini_get('include_path')))
sets the include path to (which seems correct):
/var/www/html/rembrandt/bookstore:/var/www/html/rembrandt/bookstore/
app/:.:/opt/lampp/lib/php

According to the above include path ( /var/www/html/rembrandt/
bookstore:/var/www/html/rembrandt/bookstore/app/:.:/opt/lampp/lib/
php ) the system should be finding the bootstrap.php file but it is
not.

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