I have Windows Server 2008 R2 x64.
It has running Python27 x86 + Django 1.3 + apache 2.2 x86 under wsgi. It runs ok without lxml.
We\'re using soaplib,
I've had this problem as well when attempting to load etree via Windows Scripting Host. After trying different approaches, I came across this Python 3.1 change, which proposes that the new Python modules should no longer embed manifests as it causes distribution problems with no MSVC++ runtimes installed:
So I've simply loaded up %PythonPath%\Lib\site-packages\lxml\etree.pyd in Resource Hacker (http://www.angusj.com/resourcehacker/) and removed the manifest resource embedded in it.