The program can't start because python26.dll is missing from your computer. Try reinstalling hte program to fix the problem.
c:\FolderName\python ScriptName.py
E:\workspace> C:\Python27\ArcGIS10.1\python.exe scriptname.py
--- TEST VERBOSE=1
--- Testing existing and identical version file
VersionTestPackage: No correctly formatted current version file found
--- Testing existing package with new version
VersionTestPackage: No correctly formatted current version file found
--- Testing package with non-existing version file
VersionTestPackage: No correctly formatted current version file found
--- Test package with 2 locations, first non-existing second ok
VersionTestPackage: No correctly formatted current version file found
--- TEST VERBOSE=2
--- Testing existing and identical version file
VersionTestPackage:
Checking http://www.cwi.nl/~jack/versiontestdir/Version10.txt
No "Current-Version:" header in URL or URL not found
--- Testing existing package with new version
VersionTestPackage:
Checking http://www.cwi.nl/~jack/versiontestdir/Version11.txt
No "Current-Version:" header in URL or URL not found
--- Testing package with non-existing version file
VersionTestPackage:
Checking http://www.cwi.nl/~jack/versiontestdir/nonexistent.txt
No "Current-Version:" header in URL or URL not found
--- Test package with 2 locations, first non-existing second ok
VersionTestPackage:
Checking http://www.cwi.nl/~jack/versiontestdir/nonexistent.txt
No "Current-Version:" header in URL or URL not found
Checking http://www.cwi.nl/~jack/versiontestdir/Version10.txt
No "Current-Version:" header in URL or URL not found
I went into Control Panel (Windows Server 2008) but did not see python listed in the Add/Remove programs area.