Hi I encounter the same issue. All my pages extend from a master.kid. In development, it works fine. But when I create an egg and install it, or when I try to run it with mod_python in apache, it doen't work. The python process uses all available CPU time.
When I delete the extends="'master.kid'" everything works fine. So I tried to start it up with python/lib/site-packages as the working directory, and then everything works again. So this seems to be a bug somewhere (in the handling of the syspath??) Should I enter a ticket for this? In Turbogears? Kid? CherryPy?

