changed directory structure to match python package guidelines

I also added the permissive, MIT license, a CHANGES.txt file, bumped to version 1.0.1 (see [semantic versioning](http://semver.org/) for info), and a `setup.py` file. I changed the shebang to match the more common name of the python2 executable. (just python).  

Lastly I changed the README.md to reflect installation using setup.py.