Attached Link: http://mediawiki.blender.org/index.php/Manual/PartXV/Python_Scripting

> Quote - Going back to your original question. > I've installed python in the default c:python24 but I still get that same message. > How do I tell blender where to look?

See the section called "Setting the PYTHONPATH environment variable".
Although with 2.4 you shouldn't actually need to do this, so which Python installer (from where) did you use ?