You caught us doing some quick maintenance, temporarily restricting your repository to read-only access.
Issue #148 resolved
I just installed pygame on Mountain Lion 10.8.2, XCode 4.5.2, Python 2.7 and a slight change to the recommended brew is needed:
$ which pip /usr/local/bin/pip $ pip install hg+http://bitbucket.org/pygame/pygame $ brew install sdl sdl_image sdl_mixer sdl_ttf smpeg portmidi
Works out of box otherwise :)