Windows Error in Google App Engine
I updated GAE SDK to 1.7.6 from 1.7.5,  since then I started getting this error. I reverted back to 1.7.5, the application is functioning normally :)
This is my first program in GAE. I'm working with latest GAE SDK, and Python 2.7 on Windows XP 32 bit. All was working fine; but to my surprise I'm getting the following error:

2013-03-20 22:48:26 Running command: "['C:\\Python27\\pythonw.exe', 'C:\\Program Files\\Google\\google_appengine\\dev_appserver.py', '--skip_sdk_update_check=yes', '--port=9080', '--admin_port=8001', u'B:\\AppEngg\\huddle-up']"
INFO     2013-03-20 22:48:27,236 devappserver2.py:401] Skipping SDK update check.
WARNING  2013-03-20 22:48:27,253 api_server.py:328] Could not initialize images API; you are likely missing the Python "PIL" module.
INFO     2013-03-20 22:48:27,283 api_server.py:152] Starting API server at: http://localhost:1127
INFO     2013-03-20 22:48:27,299 api_server.py:517] Applying all pending transactions and saving the datastore
INFO     2013-03-20 22:48:27,299 api_server.py:520] Saving search indexes
Traceback (most recent call last):
  File "C:\Program Files\Google\google_appengine\dev_appserver.py", line 194, in 
    _run_file(__file__, globals())
  File "C:\Program Files\Google\google_appengine\dev_appserver.py", line 190, in _run_file
    execfile(script_path, globals_)
  File "C:\Program Files\Google\google_appengine\google\appengine\tools\devappserver2\devappserver2.py", line 545, in 
    main()
  File "C:\Program Files\Google\google_appengine\google\appengine\tools\devappserver2\devappserver2.py", line 538, in main
    dev_server.start(options)
  File "C:\Program Files\Google\google_appengine\google\appengine\tools\devappserver2\devappserver2.py", line 513, in start
    self._dispatcher.start(apis.port, request_data)
  File "C:\Program Files\Google\google_appengine\google\appengine\tools\devappserver2\dispatcher.py", line 95, in start
    servr.start()
  File "C:\Program Files\Google\google_appengine\google\appengine\tools\devappserver2\server.py", line 827, in start
    self._watcher.start()
  File "C:\Program Files\Google\google_appengine\google\appengine\tools\devappserver2\win32_file_watcher.py", line 74, in start
    raise ctypes.WinError()
WindowsError: [Error 6] The handle is invalid.
2013-03-20 22:48:27 (Process exited with code 1)

I Googled it; but it seems that most of the people getting this error have something wrong in there PATH config or in x64 Windows.