Unity 2.6.1, Blender 2.49b, can't import on Windows 7

I have Unity 2.6.1, Blender 2.49b and Python 2.6 installed on Windows 7. I get the following error for all .blend files: Blender could not convert the .blend file to FBX file.
You need to use Blender 2.45 or higher for direct Blender import to work.

I set Blender to run in admin mode, otherwise you can’t run the python scripts, but that didn’t help the Unity problem.

Anyone know a fix?

Works here, I’ve also got Unity 2.6.1, Blender 2.49b and Windows 7 (64bit Home). The FBX exporter is native to Blender so you don’t need a full install of Python, although that shouldn’t effect it. What happens of you double click on a .blend file from Windows Explorer? If it doesn’t launch Blender automatically, then you may need to set Blender as the default app to open a .blend.