1. First let's set out PEGASUS_HOME
   pegasus_home = os.path.normpath(os.path.join(os.path.dirname(sys.argv[0]), ".."))
   os.environ["PEGASUS_HOME"] = pegasus_home
   lib_path = os.path.join(pegasus_home, "lib/python")

While I am not a speaker of python, the snippet above from common.py looks as if it tries to figure out some pegasus home location and then assigns it to the environment. I don't think this is correct - if I set PEGASUS_HOME in my environment, I want to use that location. Only if it is unset should you auto-guess the location. We may need to discuss this in the group.