Hi Thor,
The new installer fixed the error messages I posted. However, the ImportError still occurs. I have a feeling that I need to install a C++ runtime installer on my server. I tried Microsoft Visual C++ (http://www.microsoft.com/en-ca/download/details.aspx?id=5582) but didn't have any success.
You mentioned that you set up a Windows 7 machine. Were you successfully able to run capsule.py? If so was it a bare bones version of Windows 7 or did you have Visual Studio or any C++ runtime installed?