confused with so many python package locations for imports

[Krishnakant]

hello all,
I was doing my first complete python packaging for my software and I am
totally confused.
I see, /usr/local/lib/python-2.6/site-packages and also dist-packages.
Then I also see a directory called pyshare, then again site-packages in
usr/lib/python (I am not even remembering correct paths for many such
locations ).

Now my question is, which the perfect place?  I would like to know if I
write a distutils based setup.py for my application, then which is the
place which I should choose?

happy hacking.
Krishnakant.