I have vs7.0 & 6.0
7.0 does not accept 7.1 project files
so try with 6.0 : 
--------------------Configuration: pythoncore - Win32 Debug--------------------
Build : warning : failed to (or don't know how to) build 'C:\Python-2.5\Modules\structmodule.c'
Compiling...
exceptions.c
fatal error C1083: Cannot open source file: 'C:\Python-2.5\Python\exceptions.c': No such file or directory
md5c.c
fatal error C1083: Cannot open source file: 'C:\Python-2.5\Modules\md5c.c': No such file or directory
structmodule.c
fatal error C1083: Cannot open source file: 'C:\Python-2.5\Modules\structmodule.c': No such file or directory
Error executing cl.exe.

python25_d.dll - 3 error(s), 1 warning(s)

Those files are really not there ? So how shall I proceed ?