Any idea? Am I doing something wrong?
I have no explanation; maybe move your original found-key file to a simple directory name such as C:\WALLET along with the script, specify the max size, etc. Here is the command line I just used with pywallet in the same directory as the keyfile:
pywallet-keyskip2.py --recover --recov_device recovered-wallet.dat --recov_size 1Mio --recov_outputdir .