Distributing Python environment

[Ecir Hana]

Hello,
I have an app which I would like to extend with Python. I I saw how to
embed the interpreter into C. If I bundle my app with the Python lib
(say, python26.dll) I can PyRun_SimpleString() some code. My question
is, how do I bundle the rest of the libraries (site, os, elementtree,
random, ...)? Is it possible to make one huge (ok, not so huge) .zip
blob containing all of the libraries? And what happens if some user
has Python already installed? Which libraries get loaded first? Is it
possible to alter this order? I mean, first check for local Python
install and if the user doesn't have Python installation use the
bundled one?