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Not entirely sure, but if you select PHP script, I think it has to be pure PHP without HTML in it. You have, in effect, seperate PHP code intertwined with HTML. So I expect that the PHP is being parsed but not displayed because it's ignoring the HTML.
Try 'Autoformat' instead of 'PHP Script' and see if that helps?
On my homepage, I have a PHP script as follows that has no PHP declarations () or HTML tags, but it is set as a PHP script and so is treated as such by XOOPS without the declarations, and it works fine :
$db =& Database::getInstance();
list( $countA ) = $db->fetchRow( $db->query( "SELECT COUNT(*) FROM ".$db->prefix("myalbum_photos")." WHERE status>0" ) ) ;
echo 'The total number of lost dog reports on this site is currently ' . $countA;