khmer is a Python project, adopt a standard Python layout. Now that Python 2.7 is a pre-requisite remove argparse. Update version to 0.6 in khmer/__init__.py too. Only run zlib & bzip2 configure && make when building the extension (and only if they need updating); don't run on every invocation of setup.py. Added Trove metadata for the project. Added long_description. Bring in support for the nosetest command to setup.py. Initial porting of compilation options from the Makefiles to setup.cfg.