Buried on one of the many posts on php.net, I found a suggestion that worked. I had to add the following registry key (Start > Run > regedit)...
HKEY_LOCAL_MACHINE\SOFTWARE\PHP...with the string value name IniFilePath and the value c:\php. After I did this, I did a hard stop of IIS and restarted it and the change took fine and saw the proper php.ini file.
C:\>net start w3svc