Any particular reason for not using Apache 2, and mod_python 3.x? Anyways, looks to me like there's a problem with the path where the DLL is installed, vs. where it's search for by Apache?
I had no particular problems installing Apache 2 and mod_python 3.x on WinXP, using the mod_python installer. Sorry, but that's best I can offer! -- http://mail.python.org/mailman/listinfo/python-list