The directory structure of your project should probably look something like this:
my-project/ README.txt -- including a list of contributors would be nice CHANGES.txt -- including dates in addition to version numbers here would be informative LICENSE.txt setup.py bin/ -- standalone scripts that this distribution provides my-project/ -- the source for your project goes here __init__.py my-stuff.py doc/ test/
The packaging chapter of Dive Into Python 3 has some useful information.