I opened up the keychain access and checked the "show password" on the wireless network in my office (I don't remember it, ofc ) and i got a message that "Access to this item is restricted.".

After a lot of digging around (on another laptop) I found out that if the current system date is earlier than the creation date of your keychain file (~/Library/Keychain/login.keychain) you cannot view the items in it. So here's a loophole: No internet - can't set correct system date - no correct system date - no internet ....

Luckily for me, I devised an extremely clever plan - I manually set the date to today, got the keychain working, and then switched back to auto-date. Ha-ha.

File "setup.py", line 219, in finalize_options
NameError: global name 'w' is not defined

This is a simple thing to fix: open the setup.py file coming with psycopg2 and edit the line 219 like this:

except (Warning, w):

Remove the braces

except Warning, w:

In python 2.6 (at least) putting exceptions in brackets will catch multiple exceptions in this case Warnings and 'w's. The author clearly meant to get the Warning instance as 'w'. Also, do not forget to edit the setup.cfg file on line 28 and type in your pg_config path. Mine is

pg_config=/Library/PostgreSQL/8.3/bin/pg_config

and so should yours be if you used the default installer package for mac OS X. Oh, yeah, you need to install postgres before installing psycopg2.