Try creating a new python script in blender and typing:
Hit ALT-P to run the script, then check the DOS/Terminal window and see what’s there. It should list the paths set for python.
Also, pulldown the bar at the top of the Blender window to view the blender settings and in the Python box, add c:\python\lib or whatever the path is to your python installation’s lib directory.
Make sure you’re using Blender 2.23 rather than the 2.25 publisher version. I believe this has a different API which means old plugins/scripts might not work.
Try Python 1.52 instead of the latest one. I found the latest version worked fine for scripts in Blender but wouldn’t work with Lightflow, so I ended up installing both.
Try a few other python scripts and see if they work. If others work but this one doesn’t then it’s something specific to the script. If none of them work then it suggests a problem with your python or blender config.
I spent a while going through various websites and searching the forums to get python scripts running but I got there in the end!