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They're much of a muchness. I've favoured Postgres because it seems more straightforward as there aren't multiple distributions and crucially multiple storage engines to worry about. In MySQL's favour, Amazon RDS makes it incredibly simple to set up a scalable and reliable database so bear that in mind if you're targeting Amazon's EC2 infrastructure.In the end, if you're asking this question you can't go far wrong if you toss a coin and pick one.
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I have found the py-mysql2pgsql to work without problems.
Did you install it using “pip install py-mysql2pgsql” (if you are using a virtualenv make sure you are running it from there or have activated the virtualenv)?
No command found suggests there is a problem with your path and it can’t find the script.