Reordered the code and managed to get a clean install. We still lack proper icon installation.

res/jsoninspector.desktop

@@ -1,9 +1,8 @@
 [Desktop Entry]
 Name=JSON Inspector
-GenericName=JSON Inspector
 Exec=jsoninspector.py
 Terminal=false                                  
-Icon=/usr/local/share/jsoninspector/
+Icon=jsoninspector
 Type=Application                                
-Categories=Application;Programming;
+Categories=GNOME;GTK;Development;
 Comment=JSON Inspector              

res/jsoninspector.glade

@@ -9,6 +9,7 @@
     <property name="modal">True</property>
     <property name="window_position">center-on-parent</property>
     <property name="destroy_with_parent">True</property>
+    <property name="icon_name">jsoninspector</property>
     <property name="type_hint">normal</property>
     <property name="deletable">False</property>
     <property name="gravity">center</property>

setup.py

@@ -59,13 +59,13 @@ class CustomInstall(install):
             except:
                 print "Warning: error copying .desktop entry."
 
-
 setup(
-    name = "jsoninspector",
+    name = "Jsoninspector",
     version = "2.0",
-    packages = find_packages('src', exclude=['ez_setup']),
-    scripts = ['src/jsoninspector.py'],
+    packages = find_packages('src', exclude = ['ez_setup']),
+    entry_points = { 'gui_scripts' : [ 'jsoninspector = jsoninspector:main_start' ] },
     include_package_data = True,
+    package_dir = { '' : 'src' },
     package_data = {
         # If any package contains *.glade files, include them:
         'src': ['*.glade'],

src/jsoninspector/__init__.py

@@ -0,0 +1,13 @@
+#!/usr/bin/env python
+# -*- coding: utf-8 -*-
+
+from jsoninspector import LogicObject, MainWindowMethods
+
+def main_start():
+    """
+    So setuptools makes a nice startup script
+    """
+    logicObject = LogicObject()
+
+    mainWindow = MainWindowMethods(logicObject)
+    mainWindow.run(None)

src/jsoninspector/jsoninspector.py

@@ -11,10 +11,10 @@ import locale
 
 APP = "jsoninspector"
 
-if os.path.exists('../locale/po') and os.path.exists('../res'):
+if os.path.exists('../locale/po') and os.path.exists('../../res'):
     # We're in the development tree
-    DIR = "../locale/po/"
-    RESOURCES = "../res/"
+    DIR = "../../locale/po/"
+    RESOURCES = "../../res/"
 
 elif sys.platform != 'win32' and sys.platform != 'darwin':
     DIR = "/usr/share/locale/"
@@ -281,6 +281,8 @@ class LogicObject(object):
                                                str(type(elems[key_val]))])
 
 
+
+
 # Main procedure
 if __name__ == "__main__":