Distributing multiple packages using setup.py for Python

I may have answered my own question: If I modify the setup.py to use:

packages = find_packages(),

and change the directory structure to:

...
|-package1
|    |-setup.py
|    |-MANIFEST.in
|    |-com (symlink to ../com)
|    |-utilities (symlink to ../utilities)
|    |-package1
|    |    |-__init__.py
|    |    |-package1_1.py
|    |    |-package1_2.py
|    |    |-...

If I then cd into package1 and do:

% python setup.py sdist

It seems to create the distribution correctly.

Rob