Problem while installing django-tagging

When i was trying to install the django-tagging in my app the
following error appeared.. I tried setting the PYTHONPATH but it was
still not working. Can any one help
python2.5 setup.py install

bios@bios-hackzone:~/djcode/mysite/django-tagging$ python2.5 setup.py
install
Traceback (most recent call last):
File "setup.py", line 49, in <module>
version_tuple = __import__('tagging').VERSION
File "/home/bios/djcode/mysite/django-tagging/tagging/__init__.py",
line 3, in <module>
from tagging.managers import ModelTaggedItemManager, TagDescriptor
File "/home/bios/djcode/mysite/django-tagging/tagging/managers.py",
line 5, in <module>
from django.contrib.contenttypes.models import ContentType
File "/usr/lib/pymodules/python2.5/django/contrib/contenttypes/
models.py", line 1, in <module>
from django.db import models
File "/usr/lib/pymodules/python2.5/django/db/__init__.py", line 10,
in <module>
if not settings.DATABASE_ENGINE:
File "/usr/lib/pymodules/python2.5/django/utils/functional.py", line
269, in __getattr__
self._setup()
File "/usr/lib/pymodules/python2.5/django/conf/__init__.py", line
40, in _setup
self._wrapped = Settings(settings_module)
File "/usr/lib/pymodules/python2.5/django/conf/__init__.py", line
75, in __init__
raise ImportError, "Could not import settings '%s' (Is it on
sys.path? Does it have syntax errors?): %s" % (self.SETTINGS_MODULE,
e)
ImportError: Could not import settings '/home/bios/djcode/mysite' (Is
it on sys.path? Does it have syntax errors?): No module named /home/
bios/djcode/mysite

What should i do to resolve this error

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