I had to change repos on linuxcoin0.2final before it could find py2.7. Try the us servers. Everything installed fine after that.
Thanks, I tried changing to us instead of uk server, but it doesn't seem to change anything, or maybe it needs a reboot to take effect? Or maybe I botched it with all that fiddling. So, all you did was change the source server from uk to us in sources.list to get it up to date as per instructions in the readme?