very basic php question - trying to get started

[#1]

hello
have used php sucessfully on other host servers, but trying to do a bit of work for a friend and struggling to get my head round the cgi server issue for plus.net.....
we have a website on the web server, all works fine and dandy
I now want to add a very small piece of php code into a file
<?
include("headlines.html");
?>
have saved file as .php, but where do I put this now? 
I have FTP'd into the ccgi server, have changed file to chmod 755
do i have the file in both the web server and the ccgi server?
and most importantly, how do i call the script into play?
please help - something so simple is turning into my own private nightmare.......

[#2]

If a webpage includes php the entire webpage must be on the ccgi server.

[#3]

Step by step,
I assume you want a news type thing,
CCGI Document Root (docroot😞
/share/storage/xx/xx/username/news
Upload your index.php and headlines.html to the "news" directory in Document Root.
docroot/news/index.php

<?PHP
include("headlines.html");
?>

Upload your headlines.html into the SAME DIRECTORY, as the execution path is .
PHP will include from the same directory the script is executed from =>
docroot/news/
In a Shell Prompt (ssh username@ccgi.host.ext / Open up PuTTY and Connect)
...
username@cshellXX:~$ cd news
username@cshellXX:~$ chmod 755 index.php
...
Open your browser,
hit in http://ccgi.username.host.ext/news/index.php
It should work if you have done that because all in the same folder - the document root is easily accessible.
Let us know if you have any grief or success!
Jim,