Errors installing psycopg2 on OSX 10.5.2

I recently downloaded the psycopg2 package found here:

http://initd.org/pub/software/psycopg/psycopg2-2.0.7.tar.gz

Unfortunately, when I run "python setup.py install", I receive the following
error (see below).  This is my virgin experience with psycopg2, so its
entirely possible that I'm missing something.  Should I use a different 2.x
install package?

In file included from psycopg/psycopgmodule.c:29:
./psycopg/connection.h:27:22: error: libpq-fe.h: No such file or directory
In file included from psycopg/psycopgmodule.c:29:
./psycopg/connection.h:61: error: syntax error before 'PGconn'
./psycopg/connection.h:61: warning: no semicolon at end of struct or union
./psycopg/connection.h:78: error: syntax error before '}' token
./psycopg/connection.h:78: warning: type defaults to 'int' in declaration of
'connectionObject'
./psycopg/connection.h:78: warning: data definition has no type or storage
class
./psycopg/connection.h:81: error: syntax error before '*' token
./psycopg/connection.h:81: warning: function declaration isn't a prototype
./psycopg/connection.h:82: error: syntax error before '*' token
./psycopg/connection.h:82: warning: function declaration isn't a prototype
./psycopg/connection.h:83: error: syntax error before '*' token
./psycopg/connection.h:83: warning: function declaration isn't a prototype
./psycopg/connection.h:84: error: syntax error before '*' token
./psycopg/connection.h:84: warning: function declaration isn't a prototype
./psycopg/connection.h:85: error: syntax error before '*' token
./psycopg/connection.h:85: warning: function declaration isn't a prototype
./psycopg/connection.h:86: error: syntax error before '*' token
./psycopg/connection.h:86: warning: function declaration isn't a prototype
In file included from psycopg/psycopgmodule.c:30:
./psycopg/cursor.h:41: error: syntax error before 'connectionObject'
./psycopg/cursor.h:41: warning: no semicolon at end of struct or union
./psycopg/cursor.h:43: error: syntax error before ':' token
./psycopg/cursor.h:44: error: syntax error before ':' token
./psycopg/cursor.h:45: error: syntax error before ':' token
./psycopg/cursor.h:57: error: syntax error before '*' token
./psycopg/cursor.h:57: warning: type defaults to 'int' in declaration of
'pgres'
./psycopg/cursor.h:57: warning: data definition has no type or storage class
./psycopg/cursor.h:59: error: syntax error before 'lastoid'
./psycopg/cursor.h:59: warning: type defaults to 'int' in declaration of
'lastoid'
./psycopg/cursor.h:59: warning: data definition has no type or storage class
./psycopg/cursor.h:81: error: syntax error before '}' token
./psycopg/cursor.h:81: warning: type defaults to 'int' in declaration of
'cursorObject'
./psycopg/cursor.h:81: warning: data definition has no type or storage class
./psycopg/cursor.h:84: error: syntax error before '*' token
./psycopg/cursor.h:84: warning: function declaration isn't a prototype
In file included from psycopg/psycopgmodule.c:32:
./psycopg/microprotocols.h:55: error: syntax error before 'connectionObject'
./psycopg/microprotocols.h:55: warning: function declaration isn't a
prototype
./psycopg/microprotocols.h:58: error: syntax error before '*' token
./psycopg/microprotocols.h:58: warning: function declaration isn't a
prototype
psycopg/psycopgmodule.c: In function 'psyco_register_type':
psycopg/psycopgmodule.c:248: error: syntax error before ')' token
psycopg/psycopgmodule.c:251: error: syntax error before ')' token
In file included from psycopg/psycopgmodule.c:29:
./psycopg/connection.h:27:22: error: libpq-fe.h: No such file or directory
In file included from psycopg/psycopgmodule.c:29:
./psycopg/connection.h:61: error: syntax error before 'PGconn'
./psycopg/connection.h:61: warning: no semicolon at end of struct or union
./psycopg/connection.h:78: error: syntax error before '}' token
./psycopg/connection.h:78: warning: type defaults to 'int' in declaration of
'connectionObject'
./psycopg/connection.h:78: warning: data definition has no type or storage
class
./psycopg/connection.h:81: error: syntax error before '*' token
./psycopg/connection.h:81: warning: function declaration isn't a prototype
./psycopg/connection.h:82: error: syntax error before '*' token
./psycopg/connection.h:82: warning: function declaration isn't a prototype
./psycopg/connection.h:83: error: syntax error before '*' token
./psycopg/connection.h:83: warning: function declaration isn't a prototype
./psycopg/connection.h:84: error: syntax error before '*' token
./psycopg/connection.h:84: warning: function declaration isn't a prototype
./psycopg/connection.h:85: error: syntax error before '*' token
./psycopg/connection.h:85: warning: function declaration isn't a prototype
./psycopg/connection.h:86: error: syntax error before '*' token
./psycopg/connection.h:86: warning: function declaration isn't a prototype
In file included from psycopg/psycopgmodule.c:30:
./psycopg/cursor.h:41: error: syntax error before 'connectionObject'
./psycopg/cursor.h:41: warning: no semicolon at end of struct or union
./psycopg/cursor.h:43: error: syntax error before ':' token
./psycopg/cursor.h:44: error: syntax error before ':' token
./psycopg/cursor.h:45: error: syntax error before ':' token
./psycopg/cursor.h:57: error: syntax error before '*' token
./psycopg/cursor.h:57: warning: type defaults to 'int' in declaration of
'pgres'
./psycopg/cursor.h:57: warning: data definition has no type or storage class
./psycopg/cursor.h:59: error: syntax error before 'lastoid'
./psycopg/cursor.h:59: warning: type defaults to 'int' in declaration of
'lastoid'
./psycopg/cursor.h:59: warning: data definition has no type or storage class
./psycopg/cursor.h:81: error: syntax error before '}' token
./psycopg/cursor.h:81: warning: type defaults to 'int' in declaration of
'cursorObject'
./psycopg/cursor.h:81: warning: data definition has no type or storage class
./psycopg/cursor.h:84: error: syntax error before '*' token
./psycopg/cursor.h:84: warning: function declaration isn't a prototype
In file included from psycopg/psycopgmodule.c:32:
./psycopg/microprotocols.h:55: error: syntax error before 'connectionObject'
./psycopg/microprotocols.h:55: warning: function declaration isn't a
prototype
./psycopg/microprotocols.h:58: error: syntax error before '*' token
./psycopg/microprotocols.h:58: warning: function declaration isn't a
prototype
psycopg/psycopgmodule.c: In function 'psyco_register_type':
psycopg/psycopgmodule.c:248: error: syntax error before ')' token
psycopg/psycopgmodule.c:251: error: syntax error before ')' token
lipo: can't open input file:
/var/folders/Uk/UkBh1U9ZGSiDGhmYuxopcU+++TI/-Tmp-//ccLFU9Q6.out (No such
file or directory)
error: command 'gcc' failed with exit status 1

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