This has been driving me crazy for 2 days.
I have been trying to install psycopg2 using easy_install and no matter what I try (i.e using gcc-4.0 instead of the snow leopard default one) I always get the same error:
error: Setup script exited with error: command '/usr/bin/gcc-4.0' failed with exit status 1
Please see: http://dpaste.com/hold/228252/
I have googled that error so many times and nothing I have found seem to help.