Last week I upgraded to Lion from Snow Leopard. While I love the subtle touches of the new OS and even the natural (inverted) scrolling, it seriously screwed with my existing python packages and torched gcc until I installed X Code 4. I have a python script which uses the MySQLdb package. After a supposedly successful installation of MySQLdb, running my python script yielded the error:
For some reason the install pointed itself to the wrong place. Adding the following to your ~/.profile or ~/.bash_profile should fix the issue (assuming this is where you MySQL installation sits):
Open up a new terminal and you should be good to go.