I downloaded a self-extracting exe "py2exe-0.6.9.win32-py2.6.exe" from sourceforge. When I attempt to open this file, I get the following message
"This application has failed to start because the application configuration is incorrect".

I have successfully opened the file on another win-xp box but I need to have this on the machine having troubles.

I even copied the .exe. from good machine to bad and got same results.

I am able to download other files with no problem.

I am running win-xp pro sp2. All security updates are current.
Antivirus program is Norton Internet security 2010.

Any help will be appreciated.

Try right clicking the file and selecting Extract. Usually they will extract just fine without being executed. Also try replacing all but the last period with underscore (_) and see if that fixes it.
Right click on the file and select properties. Then look at the lines "Type of File" (should be application) and if there is one the "Opens With" options show.

Thank you for responding.

I removed all "funny" characters from the file name.
I checked the properties and confirmed it is an application.
I do not get an "extract" option by right clicking.

Still no go


Ok then use WINRAR or WINZIP or 7-Zip and open the file like it was simply a zip file.