I spent a few hours with python and was progressing slowly. I was not able to install Twistted because even pip has apparently stopped supporting older versions of python.
Note that twisted was only needed for the fancy "WebUI" for PyWallet that never really took off... and which jackjack has removed in the recent updates... it isn't actually needed for the base pywallet.py commandline tool.
You do still need the bsddb package though.