Format to PEP8 coding style, spelling fixes

These are spelling fixes and code style fixes.
Fixes failing tests from #22

The code style is PEP8 which is the de-facto python standard coding style.
http://legacy.python.org/dev/peps/pep-0008/

You can check pep8 by running
```
python setup.py flake8
```

Pay attention to lines with `# noqa`, these are ignored lines for the checks which may or may not be problematic.