Thanks a Milllion AlexT. The new image worked perfectly fine. Sorry for my late response as i was on holiday.
I had to follow steps as well mentioned in Package Repo Configuration Instructions and then update the package. But for me the "cat" command didnt work. so i had to echo "/etc/opkg/base-feeds.conf src ...... and the links for "all.. clanton.. and i586" and run the opkg update. and then install python-dev.
After installing python-dev i could successfully instal the gevent and "ouimeaux" library. Now my main target is to control the wemo device through this ouimeaux library which is python based.
Thanks a million guys JPMontero_IntelmhahnAlexT_Intel for your effort and time for solving this issue.
Cheers!