Hi Jake,
Thanks for that. I was searching the error and had not reached that page. That helps out a lot as tech support told me they did not have any idea what the error was and that Pythonwin was not installed with the ArcGIS install - which I was skeptical of.
Anyway, I must hang my head (DOH!), I was making it too complicated, of course when I installed 10.1, the Pythonwin.exe. was installed and ready for use. I just had to dig my way down through the files to find it again.
So even with that error, I am up and running with PythonWin on the server.
Thanks,
Mike