title: setup.py and installing a python project
body: <p>I've looked through the setup.py documentation and am still having some difficulties with what I feel should be pretty basic.</p>
  
  <p>I've broken this down to a simple example project that I'm trying to get running, my project's directory layout is as follows:</p>
  
  <pre><code>myproject
    setup.py
    src\
      main.py
        extern\
        __init__.py
        mytest.py
  </code></pre>
  
  <p><strong>myproject/setup.py:</strong></p>
  
  <pre><code>#!/usr/bin/env python
  from distutils.core import setup
  
  setup(name = "myproject",
        package_dir = {'':"src"},
        packages = ["extern"],
        scripts = ["src/main.py"],
        )
  </code></pre>
  
  <p><strong>myproject/src/main.py:</strong></p>
  
  <pre><code>#! /usr/bin/env python
  import extern.mytest as mytest
  
  mytest.print_test()
  </code></pre>
  
  <p><strong>myproject/src/extern/mytest.py:</strong></p>
  
  <pre><code>#!/usr/bin/env python
  def print_test():
      print "YAY"
  </code></pre>
  
  <p><strong>myproject/src/extern/_<em>init</em>_.py is blank.</strong></p>
  
  <p>I'm running setup.py as:</p>
  
  <pre><code>setup.py install --prefix ~/local
  </code></pre>
  
  <p>setup.py will complete with no errors and move main.py to ~/local/bin however when I run it I get the following error:</p>
  
  <pre><code>ImportError: No module named extern.mytest
  </code></pre>
  
  <p>Any idea what I'm doing wrong? Thanks!</p>