As you know ltib comes with an old python version 2.4.
Updating the ltib spec file so it uses a newer version is the best option. This could take some time to happen.
Meanwhile you can upgrade to a newer version 2.6 with these instructions.
1. The script may run successfully on host system:
Ubuntu 10.04 LTS (I run it in a virtual machine) with following tools set installed (PATH need to be set):
2. Decompress the attachment and enter the decompressed directory
$ tar -zxf python2.6.6-arm-cross-build.tar.gz
$ cd python2.6.6-arm-cross-build
3. Run the building script
$ chmod 755 cross_build_python2.6.6.sh
4. Package the building rusults
$ python make_dist.py
5. Install and test on target system
$ tar -zxf python-2.6.6.min-arm.tar.gz
$ export PYTHONHOME=/mnt/disk/usr
$ export PATH=$PATH:/mnt/disk/usr/bin
$ rm -rf /mnt/disk/usr/lib/python2.6/site-packages/test