1. Installed python but using visual python version. This is based on python 2.7.x
In my system this installs files under Applications and /Library/Frameworks/Python.framework

http://www.vpython.org
From this site:

First, download and install the pure 32-bit Python, Python-2.7.3
(VPython does not work with Mac 64-bit/32-bit Python, but this 32-bit version of Python works fine on 64-bit Macs)

Second, download and install VPython-Mac-Py2.7-5.74

This includes version 1.5.1 of numpy.

The download of Python-2.7.3 is from the vpython site and designed to work with vpython.
You can use the python installer from http://www.python.org. However, you will have to install numpy.
You can get numpy from http://sourceforge.net/projects/numpy/files/

2. Installed the SDL libraries from dmg
http://www.libsdl.org/

SDL  1.2.15
SDL_mixer 1.2.12
SDL_ttf  2.0.11
SDL_image 1.2.12

3. Installed the libjpeg and libpng libraries from dmg
http://ethan.tira-thompson.com/Mac_OS_X_Ports.html

libpng v1.5.4
libjpeg 8c

4. Installed Xcode 4.4 from Apple apps. Need to add command line tools.
To do this start Xcode and go to Preferences under Xcode menu. Choose the Download tab and select Components.
Then install the Command Line Tools.

5. Installed XQuartz. Mountain Lion OS X no longer includes the X11 window system library.
This is different from Lion OS X.
http://xquartz.macosforge.org/landing/

XQuartz-2.7.2.dmg

6. Downloaded pygame tar file from 
http://pygame.org/download.shtml

pygame-1.9.1release.tar.gz 

Decompressed and extracted to create directory pygame1.9.1release

6. Before compilation of pygame:

  a. SDL_x header files refer to SDL as <SDL/SDL_yy.h> However, a SDL directory is not under
the include directory of SDL (SDL/Headers). To fix this in a simple way:

    i. Went to directory
          /Library/Frameworks/SDL.framework/Headers
     then made a link as follows:
          ln -s SDL ./

7. Changed to the pygame directory (normally pygame1.9.1release). Then switched to the super user.
However, you can use the sudo command instead.

I set the following compilation flags

export CC='/usr/bin/gcc'
export CFLAGS='-isysroot /Applications/Xcode.app/Contents/Developer/Platforms/MacOSX.platform/Developer/SDKs/MacOSX10.8.sdk -I/opt/X11/include -arch i386'
export LDFLAGS='-arch i386'
export ARCHFLAGS='-arch i386'

You must specify using the original location of X11. The mac does not have a ld.so.conf
and apparently the links generated by XQuartz in /usr do not work correctly.

8. Now execute:
   python config.py
This should find the SDL, jpeg, png, and numpy libraries

   python setup.py build
This will build in the directory before installing. It should complete with no errors.
then
   python setup.py install

9. Confirmed that it worked:

   Out of super user mode and in a terminal shell

   python
   and within python
   import pygame

   this gave no error and a simple pygame program ran fine.

GAMercier 2012-08-05

Set these environment flags before building...

export CC='/usr/bin/gcc-4.0' CFLAGS='-isysroot /Developer/SDKs/MacOSX10.5.sdk -arch i386'
export LDFLAGS='-arch i386' 
export ARCHFLAGS='-arch i386'

If you get this error:

/Developer/SDKs/MacOSX10.4u.sdk/usr/include/stdarg.h:4:25: error: stdarg.h: No such file or directory

This link has a solution: http://packetcloud.net/2009/09/22/installing-mysql-python-module-for-python-262-on-snow-leopard-using-xcode/

first, get the following packages:

Open the DMG files and read the included Readme files to determine what needs to be moved where. The normal process is to go to each opened volume (/Volumes/SDL_something) directory, and run the appropriate following command:

sudo cp -R SDL.framework /Library/Frameworks/SDL.framework 
sudo cp -R SDL_image.framework /Library/Frameworks/SDL_image.framework 
sudo cp -R SDL_ttf.framework /Library/Frameworks/SDL_ttf.framework 
sudo cp -R SDL_mixer.framework /Library/Frameworks/SDL_mixer.framework

Unpack the tgz

tar xvzf pyobjc-1.4.tar.gz cd pyobjc-1.4

python setup.py bdist_mpkg --open

Unpack the tgz

tar xvzf Numeric-24.2.tar.gz cd Numeric-24.2

//#if !defined(__sgi) //      int gettimeofday(struct timeval *, struct timezone *); //#endif 

sudo python setup.py install

Skip this step if you downloaded the pre-built universal binaries for libpng & jpeg

Unpack the tgz

tar xvzf jpegsrc.v6b.tar.gz cd jpeg-6b

./configure make sudo make install-lib

Skip this step if you downloaded the pre-built universal binaries for libpng & jpeg

Unpack the tbz

tar xvjf libpng-1.2.16.tar.bz2 cd libpng-1.2.16

Build and install

./configure make sudo make install

Unpack the tgz

tar xvzf pygame-1.8.0rc3.tar.gz cd pygame-1.8.0rc3

Configure

python config.py

Using Darwin configuration...  
Hunting dependencies... 
Framework SDL found 
Framework SDL_ttf found 
Framework SDL_image found 
Framework SDL_mixer found 
Framework smpeg not found 
NUMERIC : found 24.2 
PNG     : found 
JPEG    : found

Edit Setup and put a '#' at the start of the line:

#scrap src/scrap.c $(SDL) $(X11) 

python setup.py build

sudo python setup.py install