I am running 32 bit and get the error I will uninstall python and try a newer version if I can find one... As I said in my earlier post though, I installed pythong 2.6 I think and then the latest version of QT designer and an error came up saying the version where different...

Re-installed python, no result. Re-installed QT designer 2.6 v4.7.7.1 from the link in the first post and it now works. No change from the first time but for some odd reason it works...

I've got the py file, but after copying to /home/opt/ and going to xterminal, typing
python helloworld.py
it says:
python: can't open file 'helloworld.py': [Errno 2] No such file or directory

where should I put the python files in order to run them?

edit: nevermind, I should navigate to /home/opt/ before running the file

I wanted to try this, but first, is QT designer portable? Or is a portable version available? I want to carry it on a flash drive so that I can code while travelling. I did find a portable python IDE so I can write console based apps on the go. So is there something similar for GUI designing with QT?

Qt Designer is not portable, But, You can use PySide or PyQt
to code GUI and everything for N900 using Python, no just terminal apps.
You can write a full app with Python and it will have everything a C++ app has.

Python you can write anywhere you want
You can even write these apps on your n900