krazylearner

Do:
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1.name the directory something related to your project. For example, if your project is named "Twisted",
name the top-level directory for its source files Twisted. When you do releases, you should include a version number suffix: Twisted-2.5.
2.create a directory Twisted/bin and put your executables there, if you have any. 
Don't give them a .py extension, even if they are Python source files.
Don't put any code in them except an import of and call to a main function defined somewhere else in your projects.
(Slight wrinkle: since on Windows, the interpreter is selected by the file extension, 
your Windows users actually do want the .py extension. 
So, when you package for Windows, you may want to add it.