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$ cd /usr/local/src
$ mkdir TARFILES
$ chown -R dev .
$ cd TARFILES
$ wget http://python.org/ftp/python/2.7.3/Python-2.7.3.tgz
...
$ cd ..
$ tar xvfz TARFILES/Python-2.7.3.tgz 
$ cd Python-2.7.3
$ ./configure --help
$ ./configure --rpe
$ make
...
Python build finished, but the necessary bits to build these modules were not found:
_curses            _curses_panel      _sqlite3        
_ssl               bsddb185           bz2             
dl                 gdbm               imageop         
readline           sunaudiodev                        
To find the necessary bits, look in setup.py in detect_modules() for the module's name.
...
$ sudo yum install openssl-devel readline-devel ImageMagick sqllite-devel \
  bzip2-devel gdbm-devel ncurses-devel curses-devel
...
# make yum stop complaining about incomplete transaction...
$ sudo yum install yum-utils
$ rpm -ql yum-i
$ sudo /usr/sbin/yum-complete-transaction
...
$ ./configure --prefix=/usr/local/python27
# --prefix=/usr/local/python27 (where to install)
# --enable-unicode=ucs4 (needed for psycopg2 - ?)
# --enable-shared (needed for mod_wsgi ?)
$ make clean
$ make
$ sudo make install