How to configure Jenkins to run Nosetests as build action in Windows
It's hard to help you when you don't provide more information. What's the error message you get? Check "Console Output" and add it to your question.
It sounds like you're using the build step "Execute shell". On windows you should use "Execute Windows batch command" instead.
I have installed Python 3.3 on Windows. When i run nosetests from the command prompt giving the absolute path to the python test scripts folder, it runs. However, when i configure build shell in Jenkins as 'nosetests path/to/tests --with-xunit', the build fails. I am trying to install build monitor to see reasons for build failure. The build shell has nosetests C:\seltests\RHIS_Tests\ --with-xunit . I did not set Postbuild to nosetests.xml since it rejects that entry.
Thanks. 
Sorry i am adding console output here
Building in workspace C:\Program Files\Jenkins\jobs\P1\workspace
Updating svn://godwin:3691/SVNRepo at revision '2014-01-02T18:28:06.781 +0530'
U         Allows SQL in text fields.html
At revision 3
[workspace] $ sh -xe C:\WINDOWS\TEMP\hudson796644116462335904.sh
The system cannot find the file specified
FATAL: command execution failed
java.io.IOException: Cannot run program "sh" (in directory "C:\Program Files\Jenkins\jobs\P1\workspace"): CreateProcess error=2, The system cannot find the file specified
    at java.lang.ProcessBuilder.start(Unknown Source)
    at hudson.Proc$LocalProc.<init>(Proc.java:244)
    at hudson.Proc$LocalProc.<init>(Proc.java:216)
    at hudson.Launcher$LocalLauncher.launch(Launcher.java:773)
    at hudson.Launcher$ProcStarter.start(Launcher.java:353)
    at hudson.Launcher$ProcStarter.join(Launcher.java:360)
    at hudson.tasks.CommandInterpreter.perform(CommandInterpreter.java:94)
    at hudson.tasks.CommandInterpreter.perform(CommandInterpreter.java:63)
    at hudson.tasks.BuildStepMonitor$1.perform(BuildStepMonitor.java:20)
    at hudson.model.AbstractBuild$AbstractBuildExecution.perform(AbstractBuild.java:785)
    at hudson.model.Build$BuildExecution.build(Build.java:199)
    at hudson.model.Build$BuildExecution.doRun(Build.java:160)
    at hudson.model.AbstractBuild$AbstractBuildExecution.run(AbstractBuild.java:566)
    at hudson.model.Run.execute(Run.java:1678)
    at hudson.model.FreeStyleBuild.run(FreeStyleBuild.java:46)
    at hudson.model.ResourceController.execute(ResourceController.java:88)
    at hudson.model.Executor.run(Executor.java:231)
Caused by: java.io.IOException: CreateProcess error=2, The system cannot find the file specified
    at java.lang.ProcessImpl.create(Native Method)