Actually, the M2Crypto package supports Python 2.7 just fine - I used it in a cryptographic application without any problems. I suppose the problem is that Windows does not come with a compiler, so you cannot easily install .tar.gz from PyPI? Or do you get an error message when you try to compile it?
I would suggest that the best answer to the error would be to post it on Stack Overflow so that we can fix it, instead of asking for an alternative to what there is, as far as I can tell, a first-class cryptography library for Python.
Update: Now I have successfully created M2Crypto for Windows under Python 2.7, so I can personally confirm that it works great with Python 2.7 on all major platforms.
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