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Why I am getting the above error. I am not able to run any script then what's the use of standalone console.

Also I was not able to install some packages using pip install, can I only use the ones provided?

I'm a bit confused, what are you doing to get that error? /usr/lib/python2.7/ is a directory, so it would be a strange thing for anything to be running. If you're in a bash console, you just need to run python2.7.

Regarding installing packages, this help page should make everything clear.