Hi Lubos,
Thanks for your help.
I updated to the latest version of sfepy and anaconda.
It is no longer giving me an error and the end of the message but when I try to use it with another code I am still getting a message that it can't find sfepy.  Any suggestions?
here are a couple of excerpts that are similar to what you posted
   
building data_files sources
build_src: building npy-pkg config files
Looking for python27.dll
customize Mingw32CCompiler
customize Mingw32CCompiler using build_clib
building 'sfepy_common' library
compiling C sources
C compiler: gcc -m64 -g -DNDEBUG -DMS_WIN64 -O2 -Wall -Wstrict-prototypes
[...]

gcc -m64 -g -DNDEBUG -DMS_WIN64 -O2 -Wall -Wstrict-prototypes -D__SDIR__='"sfepy\discrete\fem\extmods"' -DSFEPY_PLATFORM
=1 -D__MSVCRT_VERSION__=0x0900 -Isfepy\discrete\fem\extmods -IC:\Users\awhite40\AppData\Local\Continuum\Anaconda\include
 -IC:\Users\awhite40\AppData\Local\Continuum\Anaconda\lib\site-packages\numpy\core\include -c sfepy\discrete\fem\extmods
\geommech.c -o build\temp.win-amd64-2.7\sfepy\discrete\fem\extmods\geommech.o -g -O2
Found executable C:\Users\awhite40\AppData\Local\Continuum\Anaconda\Scripts\gcc.bat
gcc -m64 -g -DNDEBUG -DMS_WIN64 -O2 -Wall -Wstrict-prototypes -D__SDIR__='"sfepy\discrete\fem\extmods"' -DSFEPY_PLATFORM
=1 -D__MSVCRT_VERSION__=0x0900 -Isfepy\discrete\fem\extmods -IC:\Users\awhite40\AppData\Local\Continuum\Anaconda\include
 -IC:\Users\awhite40\AppData\Local\Continuum\Anaconda\lib\site-packages\numpy\core\include -c sfepy\discrete\fem\extmods
\refmaps.c -o build\temp.win-amd64-2.7\sfepy\discrete\fem\extmods\refmaps.o -g -O2
gcc -m64 -g -DNDEBUG -DMS_WIN64 -O2 -Wall -Wstrict-prototypes -D__SDIR__='"sfepy\discrete\fem\extmods"' -DSFEPY_PLATFORM
=1 -D__MSVCRT_VERSION__=0x0900 -Isfepy\discrete\fem\extmods -IC:\Users\awhite40\AppData\Local\Continuum\Anaconda\include
 -IC:\Users\awhite40\AppData\Local\Continuum\Anaconda\lib\site-packages\numpy\core\include -c sfepy\discrete\fem\extmods
\fmfield.c -o build\temp.win-amd64-2.7\sfepy\discrete\fem\extmods\fmfield.o -g -O2
gcc -m64 -g -DNDEBUG -DMS_WIN64 -O2 -Wall -Wstrict-prototypes -D__SDIR__='"sfepy\discrete\fem\extmods"' -DSFEPY_PLATFORM
=1 -D__MSVCRT_VERSION__=0x0900 -Isfepy\discrete\fem\extmods -IC:\Users\awhite40\AppData\Local\Continuum\Anaconda\include
 -IC:\Users\awhite40\AppData\Local\Continuum\Anaconda\lib\site-packages\numpy\core\include -c sfepy\discrete\fem\extmods
\common_python.c -o build\temp.win-amd64-2.7\sfepy\discrete\fem\extmods\common_python.o -g -O2
ar: adding 4 object files to build\temp.win-amd64-2.7\libsfepy_common.a
Found executable C:\Users\awhite40\AppData\Local\Continuum\Anaconda\Scripts\ar.bat
building 'sfepy_terms' library

Thanks,
Alicia