Here's the advice I use on when to use what to install cabal packages:

http://www.vex.net/~trebla/haskell/sicp.xhtml

I think it's a bit overcautious, but rather that than the alternative.
It's worth a read even if you don't follow the advice in the end.

On Mon, Oct 24, 2011 at 9:51 PM, Mike Meyer <[email protected]> wrote:
> On Mon, Oct 24, 2011 at 2:17 AM, Thomas Friedrich <[email protected]> wrote:
>> You probably have some packages of yours installed as user and some
>> others globally.  Have a look at:
>>
>> http://www.haskell.org/cabal/FAQ.html#dependencies-conflict
>>
>> I recommend that as soon as you have a running Haskell Platform to
>> always install new packages with cabal install ... --user
>
> While I arrived at the same conclusion independently, it seems to
> contradict the recommendation found at
> http://ivanmiljenovic.wordpress.com/2010/03/15/repeat-after-me-cabal-is-not-a-package-manager/.
>
> But every time I try shifting between using the package manager (which
> uses cabal install with a system-wide database) and building my own
> packages, things break in horrible ways. Running cabal as root just
> means the problems occur between root's private package db and the
> system one, breaking things in even more interesting ways.
>
>    <mike
>
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