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I had a similar experience and asked PTI support for help (before actually seeing the fix here, which was really helpful - thanks Waltter - since it got me going again until PTI got to the bottom of the problem).

Apparently PSSPY does some 'housekeeping' whenever it is imported. Part of this requires WRITE access to HKEY_LOCAL _MACHINE\SOFTWARE\PTI\License. Once my IT department granted WRITE access to this registry key I was able to uninstall\reinstall PSSE32 (getting back to the state where PSSE32 was installed after PSSE33) and no longer get the Bad Version Number error when following the above procedure of calling psspy.psseinit from outside PSSE.

Regards, Enrique