EDIT: Anaconda worked, thanks. Experimenting with the code now.

Your scipy install is broken, it has nothing to do with his code. If you can't successfully run:

    from scipy.stats import *

then it's not going to work.

Try installing a scientific python distribution like Enthought Canopy or Anaconda. On Unix systems it's possible to build it yourself, but on Windows unless you have the right compiler licenses and enjoy pain, you probably don't want to do that.

My suggestions would be to try running Canopy (Enthought) or Anaconda (Continuum), which come with all 'scientific' batteries included and make scientific libraries easier to install and to keep them up to date.