Has any1 here successfully ran a fully functional server using Apache, php and Mysql on a notebook??? Because i am running into all kinds of issues on mine and i wanted to kno if it is even possible before i continue. Also would my router have to be removed from my network in order to successfully run this???

without being able to tell you anything specific, there is absolutely no reason whatsoever that you can't do this. none at all. maybe you're better off exploring what problems you're actaully having one at a time.

I am not running a very high-use server, but I am using a laptop with Apache, PHP, and MySQL to test web-applications, send files to other people, etc.
There is no reason that you should not be able to run a server on your Laptop, the only common problems are heat or speed, but neither is an issue with a LAMP server unless you are getting a large number of hits.

As acid said, you might as well tell us what the problems are so we can give a more specific diagnosis.

Well all i really want 2 use it primarily for is an FTP server, but i would also like to configure it to host web sites but thats later down the line. I was recently going for all hardcore installations from source, but i think im gunna give XAMPP a try an c how that works out 4 me. What do u guys recommend.

The problem with going from source is that it is a pain when it comes time to upgrade the applications to the newest versions. That causes old versions with security holes to be running in an internet-exposed location. As you may be able to guess, only bad things will come out of that.

I like Gentoo myself, as it takes care of the upgrading, but I don't see any reason to build from source unless you feel like it. The binary distributions are fine unless you are like me, and want to pick exactly what programs are installed, and how they work together.