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****FIX****
i realize it has been a while since the original poster asked this question, but i am posting this fix that i found by messing around in the registry for anyone who may go searching and not find any answers like myself

With Paint shop pro there is an issue when the files are copied over from their previous media to a different directory. If you are getting the error message “python libraries are missing or corrupt…” you can fix it by manually changing the reference location in the registry:

WARNING!!!! BACK UP THE REGISTRY BEFORE EDITING ANYTHING !!!!!!

now that that is out of the way…

navigate to start->run or in windows vista/7 click your circle start button and type “regedit” into the field and press enter

expand the keys to the following location

+HKEY_CURRENT_USER
+Software
+Jasc
+Paint Shop Pro #
+File Locations
+Python Libraries

click on the “0” folder and find the key labled DIR and open it
erase whatever is in the field and replace it with the CORRECT location of your python libraries IE: “C:Program FilesPaintshop Pro 8Python Libraries”
(without the quotes) now close out of regedit and locate your .exe and try loading it again..