from your traceback:
...
File "/usr/src/Zope-2.1.1-src/inst/do.py", line 104, in do
if i and picky: raise SystemError, i
SystemError: 512
...
I had this error myself when I tried to compile Zope with PCGI.
My solution was to get myself the python-devel rpms. (with Redhat 6.0).
So, if you are working under Linux, you might give it a try...
Andy