Install issue - Python

How do I solve this issue?

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Added /usr/share/openshot to system path
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   OpenShot (version 1.0.0)
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*** ERROR: MLT Python bindings failed to import ***
*** ERROR: MLT Python bindings failed to import ***
Exception in thread Thread-1:
Traceback (most recent call last):
  File "/usr/lib/python2.6/threading.py", line 525, in __bootstrap_inner
    self.run()
  File "/usr/share/openshot/classes/thumbnail.py", line 174, in run
    mlt.Factory().init()
NameError: global name 'mlt' is not defined

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Error: OpenShot has not been installed in the Python path.
(Both the site-packages and /usr/share/openshot folders were checked)

Use the following command to install OpenShot:
  $ sudo python setup.py install

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Running the suggested command of:

sudo python setup.py install

returns the following:

python: can't open file 'setup.py': [Errno 2] No such file or directory

Please let me know how I can fix this? It was suggested I try OpenShot over KDEnLive.. but well, OpenShot doesn't install correctly.