Wow that was quick! nice to see the progress and hope to try it soon !
cd /usr/lib
ln -s libpython2.6.so.1.0 libpython2.5.so.1.0
cd /path/where/extracted/paintown/data/mugen
cp data/mugen.cgf datamugen.cfg
http://www.ascii.cl/htmlcodes.htm
./paintown --mugen