Did you read the exercises properly? there isn't order in your code at all. Let's start firstly from the beginning:
-pyg variable is fine
-What goes ahead after the declaration of the pyg variable? if you read the exercise it says "On line 4, use raw_input("Enter a word:") to ask the user to enter a word. Save the results of raw_input() in a variable called original", nothing hard, what I don't understand is, how come new_word variable has been declared before original?
-After declaring the variable original, the exercise ask to write down an if/else statement "Add an if statement that checks that len(original) is greater than zero. Don't forget the : at the end of the if statement!If the string actually has some characters in it, print the user's word.Otherwise (i.e. an else: statement), please print "empty".", how did you declared the variable word before the if statement when at exercise #4 there is still no sign of the word variable?
Start from here, make some order with your code and read the exercise properly, read the hints and don't try rushing your coding just for the sake of it, read deeply cuz from your code it looks like you haven't read the instructions at all.