rename localhost/wordpress

First you need to change your wordpress and blog url to remove the wordpress off the end. Then you need to move the contents of your wordpress folder into the root directory. Or for a cleaner root directory you could follow these directions.
https://codex.www.ads-software.com/Giving_WordPress_Its_Own_Directory

Where can I find .htaccess files?

If you don’t use the nice permalinks – you don’t have and don’t need it.

Ok in my root directory I have a folder for xammplite and wordpress. I removed “/wordpress” from my blog uri only and updated options. Then I copied index.php from wordpress directory to my root directory and add “/wordpress”/ to require(‘./wp-blog-header.php’). Now when I click on “viewsite”, it is pointing to ipaddress/xampp. What did I do wrong? I was not able to find “.htaccess” files.

What did I do wrong?
Everything.
Your “root” should be something like htdocs or public_html…

require('./wordpress/wp-blog-header.php')
You should have this in your copied index. And “copy” = means to have the index in BOTH places!

Do I have to move all the files from xampp/htdocs/wordpress to this new folder called wordpress under root directory?

Men, why are you managing a server if you don’t have a clue what are you doing?
We are not here to teach you how to set up your local server.

Your root is this:
xampp/htdocs/
Nothing else.

There is NO OTHER ROOT. Period.

moshu is pissed off..
xampp/htdocs/wordress
xampp/htdocs

rite?