%{__python} setup.py install –prefix=%{_prefix} –root=$RPM_BUILD_ROOT –record-rpm=INSTALLED_FILES

Once I fixed this for python-turbogears and it’s dependent packages (the solution is to replace –record with –record-rpm), I was able to get version 1.0.6 building for Factory. There were a few other issues which needed to be resolved (some deprecated def as() functions in python-peak and python-ruledispatch were causing syntax errors on python 2.6 – because ‘as’ is a reserved keyword), but finally I got it sorted out.

Once python 1.0.6 was successfully building on Factory, I decided to update the package to the most recent stable version of the 1.0.x package line from http://www.turbogears.org – 1.0.7. I had to rewrite the infamous cherrypy2 patch for 1.0.7 and also had to update the python-elixir package (the older 0.5 Elixir was incompatible with python-sqlalchemy >= 5) but now it builds properly.
You can now download and install python-turbogears using:

zypper in python-turbogears

(if you have the devel:languages:python repository, of course).

Thanks to Peter Poeml for his help packaging and fixing bugs.