The problem is:
:info:install dyld: Library not loaded: /sw/lib/libbz2.1.dylib
:info:install Referenced from: /sw/bin/bzip2
:info:install Reason: Incompatible library version: bzip2 requires version 1.0.1 or later, but libbz2.1.dylib provides version 1.0.0
You have Fink installed. (Specifically, you have Fink's bzip2 program, but not Fink's bzip2 library, therefore Fink's bzip2 program doesn't work.) It is not supported to have another package manager or files installed by it installed while using MacPorts. Please decide whether you would like to use MacPorts or Fink, and uninstall the other and all software installed by it.