Using your script, localhost as allowed ip in conf. Running from command line. Still get that http error 
Run the script on the command line:
php bot.php
not from a web server.
Try using my script and the json-rpc PHP file that's with it. It has better error handling.
https://github.com/dooglus/sdbot
I don't think that will work as when I just run it for 30 seconds I get a repeat of this once it's done
Warning: fopen(http://...@127.0.0.1:8332/): failed to open stream: HTTP request failed! HTTP/1.1 500 Internal Server Error in C:\xampp\htdocs\jsonRPCClient.php on line 132
Warning: fopen(http://...@127.0.0.1:8332/): failed to open stream: HTTP request failed! HTTP/1.1 500 Internal Server Error in C:\xampp\htdocs\jsonRPCClient.php on line 132
Run the script on the command line:
php bot.php
not from a web server.
Try using my script and the json-rpc PHP file that's with it. It has better error handling.
https://github.com/dooglus/sdbot