Should you get the error:
The problem is that the python-mysql egg cannot find the MySQL tools for your install, mysql_config being the particular one it’s after. The quickest solution is to add the path /usr/local/mysql/bin/ to your ~/.bash_profile’s PATH variable definition:
Remember to re-source your ~/.bash_profile to update your current shell’s PATH:
Then installing the egg should work fine. Or, at least, you should be past this issue.