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IronPython is .NET implementation of Python. It can be used as is as a standalone programming language. You csn use .NET libraries inside it.

Another way of using itis hosting it in C# with Microsoft Scripting framework and compile your python scripts on the fly. It is especially useful if you want to use awesome python libraeies in yout C# application.

It reminds me Google's V8 Javascript engine. Both can be used in another platform or language to compile and run scripts. Although IronPython's performance is a little better, the kind of serve for similar purposes. 

If I'm not wrong, you can also use V8 engine in .NET in order to run Javascript in your application.