added some code to make sure the tests run with python setup.py nosetest. the issue is we have to change to the tests directory to make sure relative paths are correct. I grab the path of the module, and construct the tests directory and change to it. the tests run now. I never change back to any directory, but that does not seem to cause any problems  right now.
deleted a temp file
ignore the egg file
ignore the egg file
continued work to integrate testing with setuptools