Loading pyd fails with "The operating system cannot run %1"

[wazza]

Running python 2.6 (r26:66714)  on Win Xp Pro SP3, I receive the
following message:
python -v -v -v
>>> import functions
.
.

# trying U:\wss\v72212\components\trm\python\lib\lib\site-packages
\_fk_cl.pyd
#   clear[2] __file__
#   clear[2] __package__
#   clear[2] __path__
#   clear[2] __name__
#   clear[2] __doc__
#   clear[2] __name__
#   clear[2] __file__
Traceback (most recent call last):
  File "<stdin>", line 1, in <module>
  File "u:\wss\v72212\components\trm\python\lib\lib\site-packages
\functions.py", line 1, in <module>
    import FK.Core
  File "U:\wss\v72212\components\trm\python\lib\lib\site-packages\FK
\Core\__init__.py", line 19, in <module>
    from _fk_cl import *
ImportError: DLL load failed: The operating system cannot run %1.

Tracking this back, this represents an error code in windows:

ERROR_INVALID_ORDINAL
182 (0xB6)

The web has been unhelpful on what this represents.

This works for people on other computers with the same configuration.
I have python 2.6 loaded locally.

Any ideas? I thought perhaps file associations in windows, but there
are none for .pyd files.