Have downloaded VLC.py, and placed it in my VLC install directory, where libvlc.dll is also present
On typing import vlc
I get the following error

Traceback (most recent call last):
  File "C:\Program Files
  (x86)\VideoLAN\VLC\vlc.py", line 88,
  in 
      dll = ctypes.CDLL('libvlc.dll')   File
  "C:\Python27\lib\ctypes__init__.py",
  line 353, in init
      self._handle = _dlopen(self._name, mode) WindowsError: [Error 193] %1 is
  not a valid Win32 application

Any ideas why?
If needed, my config is:
Win7 pro 64 bit
4GB RAM
Reposting my comment as an answer, since it fixed the problem:

I'm going to guess that the problem is trying to load a 32-bit DLL from a 64-bit process. You may be able to fix it by using a 32-bit Python build.
VLC Python Bindings -- Error 193