In order for your compiler to work without any hacks or fixes, you must have your Python folder in your Path variable. For an example, if you did install your Python in C:\Python27, then you should add ;C:\Python27 at the end of the Path. Do NOT alter the Path in any other way! As it contains important system stuff, it's definitely NOT recommended. Just add that ;C:\Python27 if it's not there. I think it won't be there, since I had to enter it manually. I think.
Anyways, notice the semicolon (
that is before the C:\Python27. Entries for different applications are separated with semicolons in the Path variable string, so you should add that semicolon so your OS knows what you're talking about.
And that's about it for setting Python up.