Creating and Finding a Python file

[Fandango21]

I picked up the O'Reilly Learning Python book the other day because I'm interested in learning how to write python code and now I'm stuck. I've written a file with a few basic statements the book provided and I can't figure out how to make Python find the file from system command line using Terminal. I've created the file in Text Wrangler and saved it with a .py extension and its in my documents folder under my user name. I can't seem to get the file to load or work. The statements in the file I created named script1.py are as follows

print(2*10)
x = 'Spam '!
print (x*8)

The statements I wrote run fine in the interactive python. Here is what I'm doing to open the file.

opened terminal - python script1.py
python: can't open file 'script1.py': [Errno 2] No such file or directory

This is odd for me because that is what the book is saying to do but it's won't find the file. I understand the code and creating files and such, I have a problem using it to locate the directory or file on my Mac. I'm not sure if this is the same thing or not but it also mentions importing files as well. Here's what I did to try to import the file

opened terminal - python
Python 2.6.1 (r261:67515, Jun 24 2010, 21:47:49) 
[GCC 4.2.1 (Apple Inc. build 5646)] on darwin
Type "help", "copyright", "credits" or "license" for more information.
>>> import script1
Traceback (most recent call last):
  File "<stdin>", line 1, in <module>
ImportError: No module named script1
>>>

The book mentions something about setting a PATH and I'm sure that is what I'm missing here. Can anyone help me out?

 

[EagleKeeper]

In your environmental variables there is one called Path.
that needs to contain the directory where you have the script.
Or you need to navigate to that directory prior to starting python.