You don't have to set either of them. PYTHONPATH can be set to point to additional directories with private libraries in them. PYTHONHOME sets the location of default libraries.

Documentation:

PYTHONHOME
Change the location of the standard Python libraries. By default, the libraries are searched in prefix/lib/pythonversion and exec_prefix/lib/pythonversion, where prefix and exec_prefix are installation-dependent directories, both defaulting to /usr/local.

When PYTHONHOME is set to a single directory, its value replaces both prefix and exec_prefix. To specify different values for these, set PYTHONHOME to prefix:exec_prefix.

PYTHONPATH
Augment the default search path for module files. The format is the same as the shell’s PATH: one or more directory pathnames separated by os.pathsep (e.g. colons on Unix or semicolons on Windows). Non-existent directories are silently ignored.

In addition to normal directories, individual PYTHONPATH entries may refer to zipfiles containing pure Python modules (in either source or compiled form). Extension modules cannot be imported from zipfiles.

The default search path is installation dependent, but generally begins with prefix/lib/pythonversion (see PYTHONHOME above). It is always appended to PYTHONPATH.

An additional directory will be inserted in the search path in front of PYTHONPATH as described above under Interface options. The search path can be manipulated from within a Python program as the variable sys.path.

The site module documentation and Modifying Python's Search Path seem to be what you're looking for.

As far as I understand it, those entries are being added to sys.path by:

• /usr/lib/python2.6/site.py
• /usr/lib/python2.6/dist-packages/site.py
  (Change 2.6 to your version of Python.)

The easiest way to change it is to add a file /usr/local/lib/python2.6/dist-packages/site-packages.pth containing ../site-packages.

Alternatively, maybe you can teach the package to use site.getsitepackages()?

You know what has worked for me really well on windows.

My Computer > Properties > Advanced System Settings > Environment Variables >

Just add the path as C:\Python27 (or wherever you installed python)

OR

Then under system variables I create a new Variable called PythonPath. In this variable I have C:\Python27\Lib;C:\Python27\DLLs;C:\Python27\Lib\lib-tk;C:\other-folders-on-the-path

This is the best way that has worked for me which I hadn't found in any of the docs offered.

EDIT: For those who are not able to get it, Please add

C:\Python27;

along with it. Else it will never work.

1. PYTHONPATH is an environment variable which you can set to add additional directories where python will look for modules and packages. e.g.:

   # make python look in the foo subdirectory of your home directory for   
   # modules and packages 
   export PYTHONPATH=${PYTHONPATH}:${HOME}/foo 
   

   Here I use the sh syntax. For other shells (e.g. csh,tcsh), the syntax would be slightly different. To make it permanent, set the variable in your shell's init file (usually ~/.bashrc).

2. Ubuntu comes with python already installed. There may be reasons for installing other (independent) python versions, but I've found that to be rarely necessary.

3. The folder where your modules live is dependent on PYTHONPATH and where the directories were set up when python was installed. For the most part, the installed stuff you shouldn't care about where it lives -- Python knows where it is and it can find the modules. Sort of like issuing the command ls -- where does ls live? /usr/bin? /bin? 99% of the time, you don't need to care -- Just use ls and be happy that it lives somewhere on your PATH so the shell can find it.

4. I'm not sure I understand the question. 3rd party modules usually come with install instructions. If you follow the instructions, python should be able to find the module and you shouldn't have to care about where it got installed.

5. Configure PYTHONPATH to include the directory where your module resides and python will be able to find your module.