Hello KiteMaster

I was finally able to reproduce the same error when running 2.49b from with in a folder and installed. I have another custom build version of 2.49b that has the python libraries built into the installer. So you will need to install not the most current of python but version 2.6.2 or 2.6.6 of python since that is the build version that Blender 2.49b was built on. You don't need to install that python version unless you have scripts or add on that depend on it being installed. I found this link in the old online manual that explains the procedure for how to set up Blender to see and find your newly installed Python path http://wiki.blender.org/index.php/Doc:2.4/Manual/Introduction/Installing_Blender/Python

Ok I'll look into it when I get the chance also thank you for taking the time into helping me.