If you have the mount connected to the Camera via ST4 cable then select "Mount -> On-camera" in PHD, you don't need ASCOM connection for ST4.
But still, if you have ASCOM installed you shouldn't get that error message though... Are you using EQMOD for the mount? that'll need ASCOM.
Run Ascom diagnostic tool to see if you can get telescope chooser up and running.
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