nested package == subpackage
or would you maybe structure the library entirely different?
Based on my limited experience with subpackages* plus reports on this list about problems, such as yours, I have concluded that subpackages are an attractive nuisance that are generally more trouble than they are worth. I suggest you consider sticking with your original flat (no subpackage) design. (But maybe someone knows better than me how to make subpackages work ;-).
* In my current project, I started with all modules in subpackages but have since moved them into the package and deleted the subpackages.
-- Terry Jan Reedy -- http://mail.python.org/mailman/listinfo/python-list