diff -ur blender-2.61/source/blender/python/intern/bpy_interface.c blender-mod/source/blender/python/intern/bpy_interface.c
--- blender-2.61/source/blender/python/intern/bpy_interface.c	2011-12-13 13:48:28.000000000 -0600
+++ blender-mod/source/blender/python/intern/bpy_interface.c	2011-12-15 17:26:50.986874961 -0600
@@ -219,11 +219,6 @@
 	 * blender is utf-8 too - campbell */
 	BLI_setenv("PYTHONIOENCODING", "utf-8:surrogateescape");
 
-	/* Python 3.2 now looks for '2.xx/python/include/python3.2d/pyconfig.h' to
-	 * parse from the 'sysconfig' module which is used by 'site',
-	 * so for now disable site. alternatively we could copy the file. */
-	Py_NoSiteFlag= 1;
-
 	Py_Initialize();
 
 	// PySys_SetArgv(argc, argv); // broken in py3, not a huge deal
diff -ur blender-2.61/source/gameengine/Ketsji/KX_PythonInit.cpp blender-mod/source/gameengine/Ketsji/KX_PythonInit.cpp
--- blender-2.61/source/gameengine/Ketsji/KX_PythonInit.cpp	2011-12-13 13:47:26.000000000 -0600
+++ blender-mod/source/gameengine/Ketsji/KX_PythonInit.cpp	2011-12-15 17:27:41.464877092 -0600
@@ -1823,7 +1823,6 @@
 	STR_String pname = progname;
 	Py_SetProgramName(pname.Ptr());
 #endif
-	Py_NoSiteFlag=1;
 	Py_FrozenFlag=1;
 
 	/* must run before python initializes */
@@ -1896,7 +1895,6 @@
 	STR_String pname = progname;
 	Py_SetProgramName(pname.Ptr());
 #endif
-	Py_NoSiteFlag=1;
 	Py_FrozenFlag=1;
 
 	initPyTypes();