SUCCESS!!

[Paul Morel]

Finally found a solution that works. The solutions shown in the link below works up to a point but there is a small tweak required. Follow these instructions up to the point where you run the /usr/bin/python setup.py build command.

http://blog.some-abstract-type.com/2009/09/mysql-python-and-mac-os-x-106-snow.html

Once you run the build command you are going to get an error complaining about the mysql_config file. You need to edit the setup_posix.py file. Change line 26 from:
mysql_config.path = "mysql_config"

to:
mysql_config.path = "/usr/local/mysql-5.1.39-osx10.5-x86_64/bin/mysql_config"

Now try the /user/bin/python setup.py build command again. It should build this time. Now you can follow the rest of the steps.