Here is my whole code with comments on each line
import arcgisscripting, sys
gp = arcgisscripting.create(9.3)
##a = input ("Enter Manhole Elevation: ")
##c = (a - 1.7)
##b = input ("Enter Inv Out: ")
##z = (a - b)
##print "Manhole Elevation is: " ,c
##print "Interior Drop is: " ,z
ManholeElevation = sys.argv[1]
InvertOut = sys.argv[2]
gp.workspace =  #this is not complete b/c it will be a file GDB (I need the server name  etc)
try:
   
    x = (ManholeElevation - 1.7)      #math function
    y = (ManholeElevation - InvertOut)  #math function
    print "Creating lyr.. "   
    gp.MakeFeatureLayer_management("manhole", "lyr")     #create temp lyr from manhole fetaure class with selected features
    print "Selecting..."    
    gp.SelectLayerByAttribute_management("lyr", "New_Selection", "Elevation")   #select the feature in that temporary layer???
    print "Calculating..."
    gp.CalculateField_management("manhole","Elevation", x)    # in the manhole feature class, under the field name Elevation populate the selected feature with the sum of variable x
    "Manhole elevation calculated..."
#gp.CalculateField_management("Manhole","InteriorDrop", y) # in the manhole feature class, under the Elevation field populate the sum of variable y .
   
except:
    #If an error occurred while running a tool, then print the messages
     print gp.GetMessages() 
any help will be appreciated, thanks.