If you need a Python library to be available to *all* of your Python apps, then install it in the $HOME/lib/python2.5 directory. A shorter version of the command is:
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easy_install-2.5 -s $HOME/bin -d $HOME/lib/python2.5 the_module_name

If you need a Python library to be available to *one* of your Python apps, then install it in the $HOME/webapps//lib/python2.5 directory for that app. You must preface the easy_install command with the PYTHONPATH variable, like so:
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PYTHONPATH=$HOME/webapps/<appname>/lib/python2.5 easy_install-2.5 -s $HOME/webapps/<appname>/bin -d $HOME/webapps/<appname>/lib/python2.5 the_module_name