Greg,
> Is there a straightforward way to tell distutils to merge
.py files from more than one source directory into a single
package when installing?
The Selenium Python bindings does something like that, have a look at 
http://selenium.googlecode.com/svn/trunk/setup.py

The other option is to write some code in setup.py before calling "setup" to do 
the merge.

HTH
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Miki Tebeka <miki.teb...@gmail.com>
http://pythonwise.blogspot.com
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