Cannot find module 'connect' on Mac OS X Lion

I installed connect module using NPM running the following command:

npm install connect

it created the module in /Download/usr/node_modules/connect folder. I created a file which uses connect module using

var connect = require('connect');
var util = require('util');

function sendjson(res,obj)
{
    res.writeHead(200,{'Content-Type':'application/json',});

    var objstr = JSON.stringify(obj);
    util.debug('SENDJSON' + objstr);
    res.end(objstr);
} 

var server = connect.createServer(
    connect.router(function(app){

        app.get('/foo', function(req,res){
            sendjson(res,{path:'foo'});
        })
        app.get('/bar', function(req,res){
            sendjson(res,{path:'bar'});
        })
    })
);

 server.listen(3000);

I run node createServer.js and it throws in the terminal and it gives me the following error.

Cannot find module 'connect'

NPM modules by default need to be installed locally in the folder that contains the source file that uses them. So if your source file is in /Desktop/nodescripts, you should run "npm install connect" in that same folder. That will create node_modules folder in that path, and your script will be able to find it.