okay so that's embarrasing.
I didn't have python installed at all. Thought I had it. I was wrong
Installed 2.6.4 and it works now!
One question: will users have to install python to play a game? I recall the export dialog asking if a dll should be copied... that one provides python support at the target machine, right?
And for the devs: please unbreak python
I'll have to test with older releases in the meantime.
this is great news!