I got the same problem as Wolfgang when I tried to install 
Lily on my Windows partition. When I checked the registry,
I could not find any key with
\HKEY_LOCAL_MACHINE\SOFTWARE\Python\PythonCore\CurrentVersion
but there was a key with
\HKEY_LOCAL_MACHINE\SOFTWARE\Python\PythonCore\1.5\InstallPath

As you can see, I have Python version 1.5 installed.

  /Mats B

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