I got the file name misspelled. The actual file is MSVCR90.dll

the link below explains how to manually install the runtime library. One
would expect the problem would disapear then, It did not.

http://www.microsoft.com/downloads/details.aspx?familyid=32BC1BEE-A3F9-4C13-9C99-220B62A191EE&displaylang=en

Manually depositing msvcr90.dll on c:\windows\system or
c:\windows\system32 fixes this error, but it causes the next one:

runtime error R6034 - An application has made an attempt to load the C
runtime library incorrectly. Please contact the application's support
team for more information. 

The only way I could find to make the problem disapear was installing on
C:\python26\