It's probably easier just to update python?
Pywallet does not run on python3. You need python 2.x to run pywallet.
I'm now getting an error "No such file or directory C:\Users\xxx\Appdata\Roaming\Bitcoin\__db.001" - do I need to install bitcoin-qt?
What are you trying to achieve with pywallet ?
If you want to use it regularly as a wallet (not advised) you do need core + blockchain synced.
But if you only want to dump your private keys, it is not required.
How (with what flags) are you starting pywallet ?
I want to extract the private keys from some old btc wallets. When starting pywallet I get "Warning:root:pycrypto or libssl not found, decryption may be slow".
Then when I run the command to dump private keys I get the error "DB_CREATE|DB_INIT_LOCK|DB_INIT_LOG|DB_INIT_MPOOL|DB_INIT_TXN|DB_THREAD|DB_RECOVER)) bsddb.db.DBNoSuchFileError: (2, 'No such file or directory -- C:\Users\Ibrahim\Appdata\Roaming\Bitcoin\__db.001"