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cd /usr/local/src
sudo mkdir TARFILES
sudo chown -R dev .
cd TARFILES
wget http://python.org/ftp/python/2.7.3/Python-2.7.3.tgz
# ...lots of output
cd ..
tar xvfz TARFILES/Python-2.7.3.tgz 
cd Python-2.7.3
# ...
$ sudo yum install openssl-devel readline-devel ImageMagick sqllite-devel \
  bzip2-devel gdbm-devel ncurses-devel curses-devel
$ ./configure --prefix=/usr/local/python27 --enable-shared --with-threads
$
make
$ sudo make install

# make sure it runs
$
/usr/local/python27/bin/python2.7

# Now, if you get errors about not being able to find libpython2.7.so.1.0,
# add this 
#    /usr/local/python27/lib
# to this file
#    /etc/ld.so.conf.d/python2.7.conf
# then run:
sudo /sbin/ldconfig

# again - make sure it runs
/usr/local/python27/bin/python2.7

# if you want to reinstall, you can simply remove the old install this way
rm -rf /usr/local/python27
# and the install it again