[styxit]

Update:
Turns out the only reason for the window to remain open after exec attempt was because I was running "maraschino" , after I turned it off, window disappears right after exec attempt. There are no new lines in log, apart from :": modules.xbmc :: ERROR :: Unable to find any XBMC-Servers. Please check your settings" with a recent date. I have tried the steps listed above, nothing. I have dbl checked install step by step, everything checks out, python itself works. (no problems during install).

Update2:

Re-downloaded Htpc and replaced dir, now when I load it the window stays around with the error showing. Logs are the same http://pastebin.com/xfdzeJCK . Steps above didn't help.

Did you run with the debug mode enabled? If you do, the log will show more information about starting cherrypy and other things. Without more info i do not know how to help you.

You can also join the irc channel, might be a better way to help you: irc://irc.freenode.net:6667/htpc-manager. Its not an active channel but maybe me or mbw2001 are able to help you out.