Suggestion:  Link the CRT statically into Python26.dll/PythonNN.dll 
and compiled .PYD files, at least when using the Microsoft compiler.  

There has been a number of bugs related to the msvcrt.dll, 
msvcr90.dll, etc.  Many of these would go away if the CRT was 
statically linked into PythonNN.dll.  

The advantages of dynamically linking the CRT are not clear.  The 
binaries are decreased a bit in size, but this is countered by having 
to redistribute the CRT DLL.  

Switching to static linking is a little more work than just flipping a 
switch, as you have to compensate for some of the initialization work 
the DLL does, but it is both doable and worth doing.