Hope none of you clever chaps mind, but I'm going to write out how I eventually got this to work as a guide to my fellow idiots.
I recently changed to a Windows 8 machine and have had issues with getting to grips with it in some areas. I have grave doubts about the "Search Files" part, I'm not convinced that it could find its own arse with both hands and a mirror. Went round and round in circles trying to follow the advice on this thread even though it all appears so straight forward.
First download the file supplied by Highway
Open the .txt file. Click on File in the top left, then Save As. Type Putlocker.py in the name field, then click on where it says Text Documents and select All Files.
Close the file. You should now have another icon on your desktop with the name Putlocker.py.
Open your "My Computer"/"This PC" menu and select your C drive (windows/main drive etc). For later ease, size the panel so that you can see your desktop screen around the panel and make sure you can see the putlocker.py file
Select Program Files (x86)
Select Xbmc
Select Add Ons
Scroll down & select Script.module.pil
Now you can click on and drag the putlocker.py file from your desktop and drop it into the folder "lib"
Close all the files/windows you've opened, launch xbmc and away you go.
You can, of course, follow all the above but rather than Drag And Drop you can right click and Copy the putlocker.py file then right click "lib" and Paste it into the file. I just made a point of typing out the long-winded half-arsed method I used in full as it did actually work for me.
Hope that helps my fellow morons who are currently tearing their hair out and nervous about asking stupid questions, when everyone else seems to be managing.