That is how everyone sees it in design view in Dreamweaver. That's what the tags always look like. Dreamweaver isn't a browser, - even 'Live' view rarely renders things correctly. The extra PHP tags are because there is added dynamic functionality in this version. Now, if you didn't see the tags, - then you'd have reason to worry.
It looks like you are up to par with everyone else - I'd go as far as to say that you are one of the luckier ones.
You can also remove read only directly from within Dreamweaver. Right-click your folders (or the root folder) in your 'files' panel, and select 'Turn off read only'.
Also, if you didn't have a database connection, you wouldn't be seeing what you are showing us in the screen shots. (content + menus etc are drawn from the database).