In 0.6.5 built programs, sys.path contains 2 entries -
the main directory, and the .zip file. This is a
regression introduced in revision 1.30 of start.c.
Specifically, that revision *attempts* to stick with a
single path entry, but neglected to notice a
side-effect of calling PySys_SetArgv is that the
directory portion of sys.argv is added to sys.path.
These extra entries are a regression and causes failure
using libxml2, amongst others.
Attached is a patch to fix this.