Django + Python 2.7 +passenger

OK So i have installed python2.7 into my $HOME/packages/lib/python2.7
Ive added my paths
and when i run python from the shell i can import django/pkg_resources fine

but when it runs (via the url) it crashes and cant import it
you can see the error here

I was able to get pyinfo module imported and ran it in the and it reported back that it was using python 2.5.2

please help or let me know if you need additional info