<p>How do I setup a Python environment on windows computer so I can start writing and running Python scripts, is there an install bundle?  Also which database should i use?</p>

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<p>I should of mentioned that I am using this for web based applications. Does it require apache? or does it use another http server? What is the standard setup for Python running web apps?</p>

Download the Python 2.6 Windows installer from
python.org
(
direct link
). If you're just learning, use the included SQLite library so you don't have to fiddle with database servers.
Most web development frameworks (Django, Turbogears, etc) come with a built-in webserver command that runs on the local computer without Apache.