I just tried installing TurboGears (http://turbogears.org) with a setup as suggested by the requestor. Only setting prefix did indeed result in files being installed in the correct location in /usr/local, but the corresponding .pth files aren't created/updated.
Using the following /usr/lib/python2.4/distutils/distutils.cfg worked for me: [install] prefix = /usr/local [easy_install] site_dirs = /usr/local/lib/python2.4/site-packages I don't know how to avoid the python2.4 bit. The $ variables aren't expanded. -- Regards Martin Skøtt