python lxml with py2exe

I have Generated an XML with dom and i want to use lxml to pretty print the xml.

this is my code for pretty print the xml

def prettify_xml(xml_str):

   import lxml.etree as etree
   root = etree.fromstring(xml_str)
   xml_str =  etree.tostring(root, pretty_print=True)

   return xml_str

my output should be an xml formatted string.

I got this code from some post in stactoverflow. This works flawlessly when i am compiling wit python itself. But when i convert my project to a binary created from py2exe (my binary is windows service with a namedpipe).I had two problems:

My service was not starting , i solved this by adding lxml.etree in includes option in py2exe function. then on my service started properly.
when xml generation in called here, is the error which I am seeing in my log 'module' object has no attribute 'fromstring'

where do i rectify this error ? And Is my first problem's solution correct ?

my xml generation Code :

from xml.etree import ElementTree
from xml.dom import minidom
from xml.etree.ElementTree import Element, SubElement, tostring, XML 
import lxml.etree 


    def prettify_xml(xml_str):

      root = lxml.etree.fromstring(xml_str)
      xml_str =  lxml.etree.tostring(root, pretty_print=True)

      return xml_str

   def dll_xml(status):
    try:
        xml_declaration = '<?xml version="1.0" standalone="no" ?>'

        rootTagName='response'
        root = Element(rootTagName)
        root.set('id' , 'rp001')

        parent = SubElement(root, 'command', opcode ='-ac')

        # Create children
        chdtag1Name = 'mode'
        chdtag1Value = 'repreport'

        chdtag2Name='status'
        chdtag2Value = status

        fullchildtag1 = ''+chdtag1Name+' value = "'+chdtag1Value+'"'
        fullchildtag2=''+chdtag2Name+' value="'+chdtag2Value+'"'

        children = XML('''<root><'''+fullchildtag1+''' /><'''+fullchildtag2+'''/></root> ''')

        # Add parent
        parent.extend(children)
        dll_xml_doc = xml_declaration + tostring(root)

        dll_xml_doc = prettify_xml(dll_xml_doc)

        return dll_xml_doc

    except Exception , error:
       log.error("xml_generation_failed : %s" % error)

Try to use PyInstaller instead py2exe. I converted your program to binary .exe with no problem just by running python pyinstaller.py YourPath\xml_a.py.