... sounds like a title for a totally pointless tutorial but in order to use Blender 2.49b together with the XPS Importer/Exporter you need to take care of a few things during the installation setup of both Blender and Python.
1. Download Blender 2.49b and run the resulting .exe file.
2. Download Python 2.6.2 and run it.
3. Now you can place the .mesh.ascii Importer and Exporter scripts into the correct folder. These are needed to import XPS/XNALara models into Blender!
Navigate to the script folder of Blender (usually this is 'C:\Program Files\Blender Foundation\Blender\.blender\scripts' or 'C:\Program Files (x86)\Blender Foundation\Blender\.blender\scripts')
Now you can run Blender and successfully import .mesh.ascii files!
Note: If a model does not include a .mesh.ascii file you have to load the model and export one from XPS. To do this go to 'Modify>Save Generic_Item' and chose .mesh.ascii in the popup dialog: