For PHP Sessions should I put this in .htaccess?
php_value session.auto_start 1

You might find some examples on how to do that in htaccess here at https://www.google.com/search?q=php+ses … p;ie=UTF-8

In my opinion, webform.php is looking for the directory /webform, and that is the reason it doesn't work.

You don't need to use the PHP file. You are accessing the HTML file. The PHP file will no longer be needed. All you do is move the CONTENTS of the webform folder up one directory and rename webform.html to index.html

Another thing.
When creating the form in the application (CoffeCup Web Form Builder)
if you go to: settings ->Notifications->from
If I put this: website.com <apply@website.com>

When I try to fill the form online, I get this error:
Your form could not be submitted for the following reason(s):
Failed to send an email to "apply@website.com".

It works ok if i only use the email address in the from field: apply@website.com

But I need to also include my company name
How can I do it?

Refer to this article:
http://www.coffeecup.com/help/articles/ … g-reasons/

There is no reason to have a company name in the TO field though. You have to just use an email address. You can however use one under the Confirm Emails in the FROM box.