"Python Dynamic library couldn't be found"

Hi,
I installed M and received a message "Python Dynamic library couldn't be found", 
so installed Python 2.4.2 into directory C:\Applications\Python\python_2.4.2 
 
python.exe seems to run - gives me a shell window where I can look at help etc.,
though as yet I am not familiar with the langage.
 
Went to M : edit=>Preferences  Python Path and set it to above directory
(or should it point to .../python.exe or .../pythonw.exe  ?
set              edit=>Preferences  Startup Script to point to M's minit.py
 
Re-run M - same error message - re-boot, reinstall M (without uninstalling)
same error message.
 
Any ideas what I have done wrong ? 
Otherwise M runs fine and accesses my mail on the server with no problems.
cheers,
    Beau Webber