$ sudo easy_install -Z MySQL-pythonAs always, I started by Googling to see who else had hit this problem. The first few hits were all unanimous, you had to edit the setup_posix.py that ships with MySQL-python and change the path to match your OS X environment.
EnvironmentError: mysql_config not found
Yes, I'm sure that would work, but the setup_posix.py isn't doing a "/go/to/this/bad/path/mysql_config ..." it's just doing "mysql_config ...".
In other words you can fix everything, and use easy_install by doing a simple:
$ PATH=/usr/local/mysql/bin:$PATHAnd then run the easy_install, everything goes fine.
(Make sure to adjust for the shell you're using!)
Simple! MySQL 5.1.33 and MySQL-python 1.2.3 on OS X 10.5.