First, for all those that posted their suggestions to my above issue, thanks!.
Of course, I had to dig deeper into forums and threads to find the specific root cause and solution for this issue.....and after spending few hours...finally, I resolved it!. Thanks to the following bug discussion link on php.net.
I tired many suggested fixes there but they didn't help. The suggestion that finally fixed the problem was pasted below ( so that let the credit go to the right owner):
[2011-03-03 12:18 UTC] comments at htmlcompressor dot com
If you are gettin the following error:
"Fatal error: session_start(): Failed to initialize storage module: files (path: ) in...."
Make sure that you have setup the session save path in your php.ini:
session.save_path = "/tmp"
which seems to be disabled by default.
I swear using Open Source software is tough!. I have spent whole day on this issue alone. My goal was to build some software and I have yet to get to it!!.