Given:

   Enter instance 
home: /usr/home/roundup/instances/support

if /usr/home/roundup/instances does not exist yet, 
init.py pukes:

  File "/usr/home/python/latest/lib/python2.1/site-
packages/roundup/init.py", line 96, in init
      copytree(template, instance_home)
  File "/usr/home/python/latest/lib/python2.1/site-
packages/roundup/init.py", line 44, in copytree
      os.mkdir(dst)
  OSError: [Errno 2] No such file or 
directory: '/usr/home/roundup/instances/support'

Perhaps not the ultimate fix, but for now I am taking 
notes on installation (until a decision on the path 
to take for doc cleanup is made) and have added (this 
horrid textarea bug entry form is gonna botch the 
formatting, oh well):

...
2.  To create a Roundup instance (necessary to do 
before you can use the software in any real fashion):

        a.  (Optional) If you intend to keep your 
roundup instances under one top level directory which 
does not exist yet, you should create that directory 
now.
...