I just installed Python 2.7. and when i open blender, in the command box it would say that there is no python installed. Is that a problem?
if you have blender 4.9 then you need python version 2.6.x as that was the version that blender was compiled with.
You have a direct reason to use 2.49?
Otherwise use 2.55, where the distributions to my knowledge include the suitable Python!