Well I’m sorry to report that after installing Python 2.6.2, I still get the same window:
Compiled with Python version 2.5.2
‘import site’ failed’ use -v for traceback
Checking for installed Python… No installed Python found.
Only built-in modules are available. Some scripts may not run.
Blender starts up and seems to work but I suspect that some of the functionality is missing. When I try to employ some tricks from the beginner videos I can not find some of the toggle buttons like smoothing (but that might be due to my inexperience with Blender). I did set the python root directory in the Blender options but that did not help.
How do I “use -v for traceback” and will that fix the problem with it not finding the python install?