I started to look for a physics library to work with pygame and here is the result. PyBox2d built for PyS60. Get it while it's hot.
There is also an example using pygame available: The crazyballs Install to data\pygame\apps to start with launcher. Oh and you'll need to copy new.py/pyc to phone from python standard library.
As a sidenote, I can say that SWIG works with PyS60 1.9.x. The only problem I had was 'libstdcpp.lib', which caused the module to fail on import on phone. I had to do a dummy implementation for __stl_throw_length_error. So this build is not perfect.
The sources are available at pybox2d official pages. The sources are untouched. I only made SCons build scripts for Symbian. Will be published once I clean up the mess, but now... I go to sleep