Well, for the OSS project. I would say open up the formats that are supported so that we don't have to modify the .MOD format (if needed) to add features people are looking for. It really wouldn't be that hard to make the import functions for the game to just load a new format into the game. Instead of trying to make import and export functions for a bunch of graphic programs.
As for my python install, well I used the installer that it came with and let it put it where it wanted. Which is C:\Python26.
Wife distracted me from the studying last night so not much new was learned for me on the importing of .MOD.
*edit*
oooOo just looked in the blender folder and seen sdl.dll, it's an SDL program. will have to check the source alittle in there too.