The MySQL Workbench installer shares Python binaries with other applications and does not seem to resolve very well conflicts.
If you have been following MySQL Workbench editions, this is one “bug” *see above* that is not solved out of the box.
MySQL Workbench 3.2.33
MySQL Workbench does not start SSH tunneling for it to connect to your underlying MySQL server especially for Windows 7 64 Bit Users.
MySQL Workbench uses Python for its SSH tunneling services. As such, if you have another application (such as Subversion), you run into the same problem because of the way the MySQL workbench relies on a public PYTHONHOME path.
I found out my problem lies with the Python conflict with my other application (Subversion Edge) sharing Python binaries.
1. Download and install an independent version of 32 bit (even if you use 64 bit OS) Python 2.4.6. (It is well documented that other versions may not necessarily work) You must only use a 32 bit version of Python 2.4.6.
2. Set your PYTHONHOME to where you have installed Python to (this is usually C:\Python26 if you have accepted the default configuration)
3. Set your PYTHONPATH to the Lib folder contained inside of your python installation.
4. Restart MySQL Workbench and it should work fine now.