Is there anyway of getting mod python to run on the latest version of python, or do i have to downgrade my python installation to 2.5.5?
This doesn't answer your question, but mod_wsgi has pretty much superseded mod_python. If possible, I'd consider using it http://code.google.com/p/modwsgi/
You need to build it using python 2.6's development libraries afaik, but a much better solution is to use FastCGI/SCGI, which will let you run not only multiple versions of python on apache, but also multiple versions of php, ruby, and other webapps, even if you decide you want to move to lighttpd, nginx, or some other webserver too. It's not without issues, but the (relatively) standardised interface that FastCGI provides is seriously underrated. Getting started with mod_fcgid on apache isn't much trouble at all.
You didn't say which operating system you're running but I see that under Debian it's not supported under Python 2.6 or higher, even in the testing or unstable version.
Mod_python is pretty much obsolete. Most people have switched to mod_wsgi and are building Python apps using wsgi compatible frameworks such as Django, Pylons etc.
That you are even asking makes me think you are using Windows.
Windows binaries for mod_python are only available up to Python 2.5. There are no binaries for mod_python for Python 2.6 and Python 3.X is not supported at all by mod_python. You could build mod_python yourself from source code, but you will need Visual Studio 2008.
On most UNIX systems which provide binary packages, you should have no issues finding mod_python for Python 2.6.