After upgrading to TeX live 2012, running latex on my example file now 
pulls in the sagetex.sty from the symlinked folder, and everything works as 
expected, both from the command line and inside TeXShop.  Thank you!

On Friday, February 22, 2013 10:50:42 PM UTC-5, Nathan Carter wrote:
>
>
>
> That's very strange. You have Sage 5.3, so you should have a pretty 
>> recent version of SageTeX, but as far as I can tell, the openout problem 
>> can only arise if you're using a really, really old version of SageTeX. 
>>
>>
> Aha!  After investigating a bunch, it turns out that I haven't updated my 
> texlive install since the dawn of time, and a sagetex.sty comes with that 
> and supercedes everything else.  I'm in the process of upgrading my texlive 
> install and we'll see if that fixes the problem.  (Of course, if I could 
> just reorder the paths in my kpsewhich -show-path=tex list, I could just 
> prioritize the one that has the new sagetex.sty, but I don't know how to do 
> that and the web wasn't helping, so I'll update texlive instead.)  I'll 
> post my results here.  Thanks!
>

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