The simplest way to deal with python package installations, so far, to me, has been to check out the source from the source control system and then add a symbolic link in th
If you download or check out the source distribution of a package — the one that has its "setup.py" inside of it — then if the package is based on the "setuptools" (which also power easy_install), you can move into that directory and say:
$ python setup.py develop
and it will create the right symlinks in dist-packages so that the .py files in the source distribution are the ones that get imported, rather than copies installed separately (which is what "setup.py install" would do — create separate copies that don't change immediately when you edit the source code to try a change).
As the other response indicates, you should try reading the "setuptools" documentation to learn more. "setup.py develop" is a really useful feature! Try using it in combination with a virtualenv, and you can "setup.py develop" painlessly and without messing up your system-wide Python with packages you are only developing on temporarily:
http://pypi.python.org/pypi/virtualenv