Error:
Warning: session_start() [function.session-start]: Cannot send session cookie - headers already sent by (output started at C:\xampp\htdocs\session.php:1) in C:\xampp\htdocs\session.php on line 3
You have to start the session before outputting anything to the browser. Unexpected output leading to similar messages can be caused by error reporting being turned on.
I think this is what the problem may be.
If you are including this file, include it earlier (higher up the script), maybe?
To expand what Cups is saying, I think you have an empty line above the <?
Or, your PHP file may contain a Byte Order Mark.
Which editor are you using?