Description of problem:
After installing and configuring denyhosts (DH) the service must be enabled. When you try to start DH, an SELinux Alert is displayed. These are the details:
SELinux is preventing /usr/bin/python2.7 from create access on the directory data.

*****  Plugin catchall_labels (83.8 confidence) suggests  ********************

If you want to allow python2.7 to have create access on the data directory
Then you need to change the label on data
Do
# semanage fcontext -a -t FILE_TYPE 'data'
where FILE_TYPE is one of the following: denyhosts_var_lock_t. 
Then execute: 
restorecon -v 'data'


*****  Plugin catchall (17.1 confidence) suggests  ***************************

If you believe that python2.7 should be allowed create access on the data directory by default.
Then you should report this as a bug.
You can generate a local policy module to allow this access.
Do
allow this access for now by executing:
# grep denyhosts.py /var/log/audit/audit.log | audit2allow -M mypol
# semodule -i mypol.pp

Additional Information:
Source Context                system_u:system_r:denyhosts_t:s0
Target Context                system_u:object_r:usr_t:s0
Target Objects                data [ dir ]
Source                        denyhosts.py
Source Path                   /usr/bin/python2.7
Port                          <Unknown>
Host                          power.ptest.us
Source RPM Packages           python-2.7.3-7.2.fc17.x86_64
Target RPM Packages           
Policy RPM                    selinux-policy-3.10.0-149.fc17.noarch
Selinux Enabled               True
Policy Type                   targeted
Enforcing Mode                Enforcing
Host Name                     power.ptest.us
Platform                      Linux power.ptest.us 3.5.4-2.fc17.x86_64 #1 SMP
                              Wed Sep 26 21:58:50 UTC 2012 x86_64 x86_64
Alert Count                   3
First Seen                    2012-10-09 00:01:37 CDT
Last Seen                     2012-10-09 00:08:21 CDT
Local ID                      74248b5e-aa97-4487-bbba-2ce3ce7ff0a3

Raw Audit Messages
type=AVC msg=audit(1349759301.377:5468): avc:  denied  { create } for  pid=15284 comm="denyhosts.py" name="data" scontext=system_u:system_r:denyhosts_t:s0 tcontext=system_u:object_r:usr_t:s0 tclass=dir


type=SYSCALL msg=audit(1349759301.377:5468): arch=x86_64 syscall=mkdir success=no exit=EACCES a0=16c5980 a1=1ff a2=383d5b39c8 a3=6168732f7273752f items=0 ppid=1 pid=15284 auid=4294967295 uid=0 gid=0 euid=0 suid=0 fsuid=0 egid=0 sgid=0 fsgid=0 tty=(none) ses=4294967295 comm=denyhosts.py exe=/usr/bin/python2.7 subj=system_u:system_r:denyhosts_t:s0 key=(null)

Hash: denyhosts.py,denyhosts_t,usr_t,dir,create

audit2allow

#============= denyhosts_t ==============
#!!!! This avc is allowed in the current policy

allow denyhosts_t usr_t:dir create;

audit2allow -R

#============= denyhosts_t ==============
#!!!! This avc is allowed in the current policy

allow denyhosts_t usr_t:dir create;
---------------------------


Version-Release number of selected component (if applicable):
denyhosts.noarch   2.6-26.fc17   @fedora

How reproducible:
Was not duplicated. 

Steps to Reproduce:
1. Install DH
yum -y install denyhosts

2. Configure with these options:
$ sudo vi /etc/denyhosts.conf
---
SECURE_LOG = /var/log/secure
HOSTS_DENY = /etc/hosts.deny
PURGE_DENY = 12w 
BLOCK_SERVICE  = sshd
DENY_THRESHOLD_INVALID = 5
DENY_THRESHOLD_VALID = 10
DENY_THRESHOLD_ROOT = 5
DENY_THRESHOLD_RESTRICTED = 1
WORK_DIR = /usr/share/denyhosts/data
SUSPICIOUS_LOGIN_REPORT_ALLOWED_HOSTS=YES
HOSTNAME_LOOKUP=YES
LOCK_FILE = /var/lock/subsys/denyhosts
ADMIN_EMAIL = me
SMTP_HOST = localhost
SMTP_PORT = 25
SMTP_FROM = DenyHosts <root>
SMTP_SUBJECT = DenyHosts Report
SYSLOG_REPORT=YES
AGE_RESET_VALID=5d
AGE_RESET_ROOT=25d
AGE_RESET_RESTRICTED=25d
AGE_RESET_INVALID=10d
RESET_ON_SUCCESS = yes
DAEMON_LOG = /var/log/denyhosts
DAEMON_SLEEP = 30s
DAEMON_PURGE = 1h
SYNC_SERVER = http://xmlrpc.denyhosts.net:9911
SYNC_INTERVAL = 2h
SYNC_UPLOAD = yes
SYNC_DOWNLOAD = yes
SYNC_DOWNLOAD_THRESHOLD = 3
SYNC_DOWNLOAD_RESILIENCY = 5h
---

3. Start the DH Service
sudo systemctl start denyhosts.service

  
Actual results:
AVC denial message is displayed:
The Source process: /usr/bin/python2.7
Attempted this access: create
On this directory: data

Expected results:
DH starts as a service without error and runs per design.

Additional info:
This fixes the problem:
sudo chcon -R -t denyhosts_var_lib_t /usr/share/denyhosts

But it should just be worked out of the system.
---

Also, grift, of the freenode IRC channel suggests that DH shouldn't be saving data in '/usr/share/denyhosts/data' but rather in '/var/lib/denyhosts/data' per RH design standards.