For 3.6 I've changed this behaviour fairly significantly. See https://docs.python.org/3.6/using/windows.html#finding-modules for the new docs on the 'sys.path' file (name subject to change, but I like the parallel :) )

The embedded distro will include a default sys.path file with "python36.zip" and "." in it, which will omit the other entries. It's not ideal for "portable terminal" use as it enables isolated mode by default, but it's perfect for embedding.

I think I'll also make pythonXX.zip a landmark file (currently only Lib\os.py is checked), so that we default to the current path if the zip file is there.