New images were being initialized with zero users (normal for other data types),

but for images user counts work differently.
(just noticed this is what blender does so Image.New() now does the same)

Many of the sys functions had maximum path thengths that were too short.
  char path[FILE_MAXFILE];
rather then
  char path[FILE_MAXDIR + FILE_MAXFILE];

source/blender/python/api2_2x/Image.c

@@ -239,7 +239,9 @@ static PyObject *M_Image_New( PyObject * self, PyObject * args)
 						"couldn't create PyObject Image_Type" ) );
 
 	/* reset usage count, since new_image() incremented it */
-	image->id.us--;
+	/* image->id.us--; */
+	/* Strange, new images have a user count of one???, otherwise it messes up */
+	
 	return Image_CreatePyObject( image );
 }
 

source/blender/python/api2_2x/Sys.c

@@ -151,9 +151,9 @@ PyObject *sys_Init( void )
 	dict = PyModule_GetDict( submodule );
 
 #ifdef WIN32
-	sep = Py_BuildValue( "s", "\\" );
+	sep = PyString_FromString( "\\" );
 #else
-	sep = Py_BuildValue( "s", "/" );
+	sep = PyString_FromString( "/" );
 #endif
 
 	if( sep ) {
@@ -169,7 +169,7 @@ static PyObject *M_sys_basename( PyObject * self, PyObject * args )
 {
 	PyObject *c;
 
-	char *name, *p, basename[FILE_MAXFILE];
+	char *name, *p, basename[FILE_MAXDIR + FILE_MAXFILE];
 	char sep;
 	int n, len;
 
@@ -188,22 +188,23 @@ static PyObject *M_sys_basename( PyObject * self, PyObject * args )
 	if( p ) {
 		n = name + len - p - 1;	/* - 1 because we don't want the sep */
 
-		if( n > FILE_MAXFILE )
+		if( n > FILE_MAXDIR + FILE_MAXFILE )
 			return EXPP_ReturnPyObjError( PyExc_RuntimeError,
 						      "path too long" );
 
 		BLI_strncpy( basename, p + 1, n + 1 );
-		return Py_BuildValue( "s", basename );
+		return PyString_FromString( basename );
+		
 	}
 
-	return Py_BuildValue( "s", name );
+	return PyString_FromString( name );
 }
 
 static PyObject *M_sys_dirname( PyObject * self, PyObject * args )
 {
 	PyObject *c;
 
-	char *name, *p, dirname[FILE_MAXDIR];
+	char *name, *p, dirname[FILE_MAXDIR + FILE_MAXFILE];
 	char sep;
 	int n;
 
@@ -220,15 +221,15 @@ static PyObject *M_sys_dirname( PyObject * self, PyObject * args )
 	if( p ) {
 		n = p - name;
 
-		if( n > FILE_MAXDIR )
+		if( n > FILE_MAXDIR + FILE_MAXFILE )
 			return EXPP_ReturnPyObjError( PyExc_RuntimeError,
 						      "path too long" );
 
 		BLI_strncpy( dirname, name, n + 1 );
-		return Py_BuildValue( "s", dirname );
+		return PyString_FromString( dirname );
 	}
 
-	return Py_BuildValue( "s", "." );
+	return PyString_FromString( "." );
 }
 
 static PyObject *M_sys_join( PyObject * self, PyObject * args )
@@ -263,14 +264,14 @@ static PyObject *M_sys_join( PyObject * self, PyObject * args )
 
 	BLI_strncpy( filename + pathlen - 1, name, namelen );
 
-	return Py_BuildValue( "s", filename );
+	return PyString_FromString( filename );
 }
 
 static PyObject *M_sys_splitext( PyObject * self, PyObject * args )
 {
 	PyObject *c;
 
-	char *name, *dot, *p, path[FILE_MAXFILE], ext[FILE_MAXFILE];
+	char *name, *dot, *p, path[FILE_MAXDIR + FILE_MAXFILE], ext[FILE_MAXDIR + FILE_MAXFILE];
 	char sep;
 	int n, len;
 
@@ -301,7 +302,7 @@ static PyObject *M_sys_splitext( PyObject * self, PyObject * args )
 	/* loong extensions are supported -- foolish, but Python's os.path.splitext
 	 * supports them, so ... */
 	 
-	if( n >= FILE_MAXFILE || ( len - n ) >= FILE_MAXFILE )
+	if( n >= FILE_MAXDIR + FILE_MAXFILE || ( len - n ) >= FILE_MAXDIR + FILE_MAXFILE )
 		return EXPP_ReturnPyObjError( PyExc_RuntimeError, "path too long" );
 
 	BLI_strncpy( ext, dot, n + 1 );
@@ -367,9 +368,8 @@ static PyObject *M_sys_makename( PyObject * self, PyObject * args,
 }
 
 static PyObject *M_sys_time( PyObject * self )
-{
-	double t = PIL_check_seconds_timer(  );
-	return Py_BuildValue( "d", t );
+{	
+	return PyFloat_FromDouble( PIL_check_seconds_timer(  ) );
 }
 
 static PyObject *M_sys_sleep( PyObject * self, PyObject * args )
@@ -403,8 +403,8 @@ static PyObject *M_sys_exists( PyObject * self, PyObject * args )
 	else if( S_ISDIR( mode ) )
 		i = 2;
 	/* i stays as -1 if path exists but is neither a regular file nor a dir */
-
-	return Py_BuildValue( "i", i );
+	
+	return PyInt_FromLong(i);
 }
 
 static PyObject *M_sys_expandpath( PyObject * self, PyObject * args )