Building mySQL-python with python 2.6

[abolotnov]

Hi, I am trying to build mySQL-python with python 2.6 on windows and
can't figure what's wrong with it.

D:\temp\mysqlPyC\MySQL–python–1.2.3c1>python setup.py build
running build
running build_py
copying MySQLdb\release.py –> build\lib.win32–2.6\MySQLdb
running build_ext
building '_mysql' extension
error: Unable to find vcvarsall.bat

the vcvarsall.bat is in %path% though:

D:\temp\mysqlPyC\MySQL–python–1.2.3c1>vcvarsall.bat
Setting environment for using Microsoft Visual Studio 2010 x86 tools.

Are there python settings that point to specific compiler directory or
something that I need to change/update?