This has happened before on another computer at my work:
If you install python, then uninstall it, when you re-install it it stops brining up the 'Edit with Idle' option and the running from python doesnt seem to be working properly. This is extreamly annoying for me as it makes it incredibly difficult to code on, as you must open up the code through idle, and you must also reference "c:\python25\pyton.exe" before using the py file. 

Can this be fixed? is there an easy solution for me to make this work properly on my computer (and on the computer at work)?

Please email me back if you find a solution: elfin24@gmail.com, thanks :)

Steps to reproduce:
1) Install python 2.5
2) Un-install pyton 2.5
3) Install python 2.4
4) Right click on a '*.py' file
5) Observe no 'Edit with idle' option
6) Run the *.py file (after entering in c:\python24 into the enviromental variables)
7) Observe it not working properly
8) Uninstall 2.4.4
9) Install 2.5
10) Run the *.py file (after entering in c:\python25 into the enviromental variables and removing the 24 version)
11) Observe it not working properly

It|s unlikely that I will be able to work on this at all before April

Can anyone confirm for recent versions?

I've been chopping and changing versions recently and haven't had any problems.  @Brian/Tim any comments?

Yeah this was fixed a long time ago thanks :)