Did either of you try the -d flag like it suggests to get the debug output? It might give us more info. For reference I use 4.6.2 QT and QT Designer on my desktop (Linux). But my python-qt4 packages are 4.7.2. They seem to work ok.
trackback (most recent call last): file"C:\program files\python26\lib\site-packages\PyQt4\uic\port_v2\invoke.py", line 12 in invoke exit_status = driver.invoke() file"C:\program files\python26\lib\site-packages\PyQt4\uic\port_v2\driver,py", line 7 in invoke self.generate() file"C:\program files\python26\lib\site-packages\PyQt4\uic\port_v2\driver,py", line 60 in _generate pyfile = open(self.opt.output, "wt", encoding="utf8") typeError: "encoding" is an invalid keyword argument for this function