Use setuptools instead of distutils. Add Python-2.5 support for with statement as described in http://docs.python.org/whatsnew/pep-343.html *Please test*

MySQLdb/setup.py

@@ -2,8 +2,8 @@
 
 import os
 import sys
-from distutils.core import setup
-from distutils.extension import Extension
+import ez_setup; ez_setup.use_setuptools()
+from setuptools import setup, Extension
 
 if sys.version_info < (2, 3):
     raise Error, "Python-2.3 or newer is required"