1) Safely install Homebrew into into its own directory (downloaded bottles will be downloaded into here)
cd ~ mkdir ~/Developer cd ~/Developer git clone https://github.com/mxcl/homebrew.git
2) To set up the symlinks without having to chown /usr/local, just use chmod o+w
sudo chmod -R o+w /usr/local
3) Symlink the Cellar from /usr/local to ~/Developer/homebrew. This is necessary so that installed bottles can reference Cellar correctly.
ln -s ~/Developer/homebrew/Cellar /usr/local/Cellar
4) Install the bottle, in this case I used erlang. Be aware that Homebrew will still create symlinks into /usr/local
brew install erlang
5) Now that the bottle is installed, change the permissions on /usr/local back using chmod o-w
sudo chmod -R o-w /usr/local
Note: When installing more bottles, just do step 2, then step 4, and finally step 5.