Have you tried the light version? Also, the log seems to indicate you run it directly from the .dmg (which should be supported, but still), could you copy it somewhere else and try it from there?
Regardless of this, I'll push 1.8 as release later today :)
I've tried the light version, and I've tried running it from the Applications directory and my WoW directory. No dice :(
I should mention that I've got MacPython 2.5 installed as well -- don't know if that might be causing the problem.