AFAIK, pysqlite has moved to googlecode -- if something is redirecting to pysqlite.org, then that needs to be fixed pysqlite side. In the meantime, is there a reason that yum install python-sqlite2 doesn't give you what you need?
python-sqlite2 and the libs were there, I had to install pysqlite from source. Now that I have solved it, it now complains about sqlalchemy.exc.ProgrammingError:. I can get it working, that's not the problem, but was looking for a easy solution :)