I found a working win7 binary here: Unofficial Windows Binaries for Python Extension Packages It’s from Christoph Gohlke at UC Irvine. There are binaries for python 2.5, 2.6, 2.7 , 3.1 and 3.2 for both 32bit and 64 bit windows.
There are a whole lot of other compiled packages here, too.
Be sure to uninstall your old PILfirst.
If you used easy_install:
easy_install -mnX pil
And then remove the egg in python/Lib/site-packages
Be sure to remove any other failed attempts. I had moved the _image dll into Python*.*/DLLs and I had to remove it.