Use MySQL-python==1.2.5 (supports setuptools >= 2.2)

Fixes 'IOError: Could not build the egg.' packaging compatability issue
when using setuptools >= 2.2 to install package.

https://github.com/farcepest/MySQLdb1/compare/MySQLdb-1.2.4...MySQLdb-1.2.5
Use pillow instead of PIL

Pillow seems to be the preferred over PIL for Django.

https://code.djangoproject.com/ticket/19934