qgis.core import error

I would want to use the Qgis api for custom desktop application. When I imported the qgis.core module, I get the following error

>>> import qgis.core 
Traceback (most recent call last):   
File "<stdin>", line 1, in <module> 
ImportError: DLL load failed: The
specified module could not be found.

A similar error was reported in the forums,im not sure if the exact solution was reached.

Python :ImportError: DLL load failed: The specified module could not be found

Forums do suggest that I would have to use the OSGeo Version of python. How would i get to choose the version of python to use?

I think this could be a path or a pythonpath.Have given my path and python path information below.Let me know if I had missed any of the directories that should be added for qgis core to get its dependencies met.

PATH=C:Python26;C:Python26Scripts;C:Python26ArcGIS10.0;C:Python26ArcGIS10.0Scripts;C:OSGeo4Wappsqgis-devbin

PYTHONPATH=C:Python26;C:OSGeo4Wappsqgispython;C:OSGeo4Wappspython27;C:Python26ArcGIS10.0;C:Python26Libsite-packages