Python error when running sagetex.sage outside ~ directory

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Hi, I use Sage-5.10 (Downloaded source and built one in Ubuntu 12.04 lts) and I've linked Sagetex to my existing TeX installation, I've removed the 'sagetex.sty from TeX'. so it works from my ~/texmf directory. But when I run sage on my sagetex.sage file produced from .tex file--outside my home directory, I get an error 'No such file or directory ..' but it works well if I move the 2 files to my ~ directory and then run sage on the files(to get the .sout and .scmd files), Can I fix this to work on other subdirectories?. My Sage Directory is ~/Desktop/sage-5.10/sage.