There's almost nothing in the project that would run on a reasonably-modern LAMP setup unless you deliberately turned on all of the possible unsafe settings (and you'd need to have a VPS in order to do that). The PHP essentially needs to be completely rewritten to bring it up to date so it will run today and make sure it survives a transition to PHP version 5.5 (which is looming soon). The HTML would have been considered bad practice in 2004 (the screenshot copyright date) as well; it would only have been acceptable if you needed to support IE4 & 5 and Netscape 4.x (which would have been a distinct possibility in South Asia at the time). And the JavaScript won't work in most modern browsers.
Frankly, it would be a better idea to build a new application from scratch. Not only would it be easier than trying to fix what's there now, it would result in something that's more useful to students, teachers and administrators. I'm willing to help with that. (And no, this isn't a "hire me" thing; replacing the existing project is not a terribly difficult task, and it's an opportunity for you to learn what goes into making software like this from the requirements-gathering phase through to a finished product. It might take a couple of weeks to get it done, but that's mostly because of communication delays and time zones.) But that goes well beyond what's appropriate for this forum, so I'll ask you to PM me if you want to get this started.