Hmm, this is still broken in python2.6 2.6.4~rc2-0ubuntu1 on karmic!
dhuggins@gorb:~/Projects/Sphinx/sphinxbase/amd64-linux/python$ python2.6 setup.py install --prefix=/usr/local running install running build running build_ext running install_lib creating /usr/local/local error: could not create '/usr/local/local': Permission denied
Hmm, this is still broken in python2.6 2.6.4~rc2-0ubuntu1 on karmic!
dhuggins@ gorb:~/ Projects/ Sphinx/ sphinxbase/ amd64-linux/ python$ python2.6 setup.py install --prefix=/usr/local
running install
running build
running build_ext
running install_lib
creating /usr/local/local
error: could not create '/usr/local/local': Permission denied