I tried to install pygame via pip but this fails. Based on my google searches, it sounds like easy_install also fails.
I also checked out: http://www.pygame.org/wiki/MacLionCompile but the solution is incomplete.
I'm running python 2.7.1 bundled with Lion.
Suggestions? Appreciate the help.
You could try the binary package for Lion, available on the pygame website.
It worked for me (OSX 10.7.1 with bundled Python 2.7.1)