Okay, I found it. The .py file was in the src version of web2py. Anyway, the script is giving the following error, whereas the original script worked fine.
Given below is the traceback. C:\Documents and Settings\rupeshpradhan\Desktop\scripts>python extract_mysql_models.py rupesh:password@rockvale Traceback (most recent call last): File "extract_mysql_models.py", line 106, in <module> print mysql(m.group(3),m.group(1),m.group(2)) File "extract_mysql_models.py", line 62, in mysql stderr=subprocess.PIPE) File "D:\Python25\lib\subprocess.py", line 594, in __init__ errread, errwrite) File "D:\Python25\lib\subprocess.py", line 822, in _execute_child startupinfo) WindowsError: [Error 2] The system cannot find the file specified