If you're using Windows, add the Python install directory to your PATH environment variable. See http://docs.python.org/using/windows.html#excursus-setting-environment-variables for more information. And no, it won't work with TNS files for OS 3.0.2 and above. (By the way, BBify can also convert OS 3.0.1 TNS files to Lua source -- sorry for the thread hijack, but I thought it was relevant.)
Ah Ok. I realised that may be the case as soon as I saw Problem1.xml in the code somewhere.
OS 3.0.2 has that encrypted
.