Blender 2.49b Python 2.6.6 on Windows XP SP3

I just installed Blender 2.49b and Python 2.6.6 on a Windows XP SP3 machine. I’ve been able to get Blender 2.5 working but I need the OGRE export support. The install appears to have been successful. When I open Blender, it finds python ok, and loads the UI. The problem is that when I move my mouse over the menus, the menu doesn’t expand. It dosen’t matter which one. When I move the mouse off the menu, it pops up for a split second, then disappears. Anyone know what would cause this?