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You want to point at your tor binary, I think, not just the path (i.e. something like "--tor ../tor-2.3.*/src/or/tor")
If you're liking Python, I'd also love some feedback on txtorcon's API (it has 98% unit-test coverage, but doesn't depend on a running Tor, so doesn't really help your use-case of testing Tor I suppose).
I do have a very, very experimental thing for Chutney that rips out its templating + subprocess stuff and puts txtorcon there instead.
https://txtorcon.readthedocs.org
Cheers, meejah