My problem has been that I've been unable to build the python-examples. Somehow, jam has not been able to work out the different variables on my system, so this is what I did:
 
* I used the meny-item "Visual Studio .NET Command Prompt" (runs vsvars32.bat; important variable-"fixes")
* I downloaded the latest version from cvs
* I copied the vc7-directory to the root, "C:\Vc7" ie. no spaces in path!
* I use these variables: PYTHON_ROOT, PYTHON_VERSION, VC7_ROOT (undocumented I think)
* As a tool I use the undocumented vc7: -sTOOLS="vc7"
 
Any undocumented info is from David Abrahams.
 
One of the crucial "bugs" here is related to jam's improper handling of spaces in paths, methinks...
 
Cheers,
pål.