libsecondlife is a C# reimplementation of the SecondLife protocol. IronPython is Python on .NET. They should be able to be used together. They can be. However, IronPython is not Python - most of the standard library is missing (although many of the pure-Python modules would certainly work). External libraries are also handled differently. The following makes one happy:
import clr
clr.AddReferenceToFile("libsecondlife.dll")
import libsecondlife
With this, I got everything loaded together. Maybe a start for me to play around with it.