PHP (recursive acronym for PHP: Hypertext Preprocessor) is a widely-used open source general-purpose scripting language that is especially suited for web development and can be embedded into HTML.
Instead of lots of commands to output HTML (as seen in C or Perl), PHP pages contain HTML with embedded code that does "something" (in this case, output "Hi, I'm a PHP script!"). The PHP code is enclosed in special start and end processing instructions that allow you to jump into and out of "PHP mode."
The best things in using PHP are that it is extremely simple for a newcomer, but offers many advanced features for a professional programmer. Don't be afraid reading the long list of PHP's features. You can jump in, in a short time, and start writing simple scripts in a few hours.
Although PHP's development is focused on server-side scripting, you can do much more with it. Read on, and see more in the What can PHP do? section, or go right to the introductory tutorial if you are only interested in web programming.