Excellent analysis guys! Thank you!

The -X faulthandler option didn't work.
The -S -v, however, did. 
Finally, renaming and deleting the readline entries fixed it such that I can now launch the REPL. 
Question. What does " disables the site module" for the -S option mean?

Now, what do I do about the (py)readline issue? Do I need to reinstall something?

Logs below:


c:\Python27>python
Python 2.7.13 (v2.7.13:a06454b1afa1, Dec 17 2016, 20:42:59) [MSC v.1500 32 bit (Intel)] on win32
Type "help", "copyright", "credits" or "license" for more information.

c:\Python27>python -X faulthandler -S -v
-X is reserved for implementation-specific arguments
usage: python [option] ... [-c cmd | -m mod | file | -] [arg] ...
Try `python -h' for more information.

c:\Python27>python -X
-X is reserved for implementation-specific arguments
usage: python [option] ... [-c cmd | -m mod | file | -] [arg] ...
Try `python -h' for more information.

c:\Python27>python -X -faulthandler -S -v
-X is reserved for implementation-specific arguments
usage: python [option] ... [-c cmd | -m mod | file | -] [arg] ...
Try `python -h' for more information.

c:\Python27>python  -S -v
# installing zipimport hook
import zipimport # builtin
# installed zipimport hook
Python 2.7.13 (v2.7.13:a06454b1afa1, Dec 17 2016, 20:42:59) [MSC v.1500 32 bit (Intel)] on win32
>>> ^Z

# clear __builtin__._
# clear sys.path
# clear sys.argv
# clear sys.ps1
# clear sys.ps2
# clear sys.exitfunc
# clear sys.exc_type
# clear sys.exc_value
# clear sys.exc_traceback
# clear sys.last_type
# clear sys.last_value
# clear sys.last_traceback
# clear sys.path_hooks
# clear sys.path_importer_cache
# clear sys.meta_path
# clear sys.flags
# clear sys.float_info
# restore sys.stdin
# restore sys.stdout
# restore sys.stderr
# cleanup __main__
# cleanup[1] zipimport
# cleanup[1] signal
# cleanup[1] exceptions
# cleanup[1] _warnings
# cleanup sys
# cleanup __builtin__
# cleanup ints: 6 unfreed ints
# cleanup floats

c:\Python27>python
Python 2.7.13 (v2.7.13:a06454b1afa1, Dec 17 2016, 20:42:59) [MSC v.1500 32 bit (Intel)] on win32
Type "help", "copyright", "credits" or "license" for more information.

c:\Python27>ren C:\Python27\Lib\site-packages\readline.py readline.py.bak

c:\Python27>del C:\Python27\Lib\site-packages\readline.pyc

c:\Python27>python
Python 2.7.13 (v2.7.13:a06454b1afa1, Dec 17 2016, 20:42:59) [MSC v.1500 32 bit (Intel)] on win32
Type "help", "copyright", "credits" or "license" for more information.
>>>