found solution, however doesnt satisfy me.
according to apache error log:
[Tue Aug 07 13:14:20 2007] [error] [client 127.0.0.1] PHP Warning: Unknown: Failed to write session data (files). Please verify that the current setting of session.save_path is correct (C:\\Users\\XXXX\\AppData\\Local\\Temp\\php\\session) in Unknown on line 0
The save_path is set to d:/wamp/tmp and NOT c:\users!!
However if I create the folder php/session in the c:\users\xxxx\apdata\local\temp folder it DOES work fine!
PHP doesnt seem to change my save path