i am already doing (3), and all is working perfectly. bytestring literals are fine, i'm not sure what this trouble is that you speak of.
note that i'm not using PyRun_AnyFile(), i'm loading the script myself, assumed as utf8 (which was my original problem, i had assumed it was macRoman), then calling PyRun_SimpleString(). it works flawlessly now, on both mac and windows. -- http://mail.python.org/mailman/listinfo/python-list