Seems like this should either fail loudly or more preferably work :) Right now it prints out the instructions for connecting to it with --existing but doing so does not actually work.
I dug into why this was happening a little bit and it seems like the SIG_INT wrangling can't be done which is what is blowing up. Commenting out the spots where the kernel tries to do this seems to get embed_kernel actually working.
IPython.sys_info:
{'codename': 'An Afternoon Hack',
'commit_hash': '02da31c',
'commit_source': 'installation',
'default_encoding': 'UTF-8',
'ipython_path': '/usr/local/lib/python2.7/site-packages/IPython',
'ipython_version': '1.0.0',
'os_name': 'posix',
'platform': 'Darwin-12.4.0-x86_64-i386-64bit',
'sys_executable': '/usr/local/opt/python/bin/python2.7',
'sys_platform': 'darwin',
'sys_version': '2.7.5 (default, Aug 2 2013, 16:51:34) \n[GCC 4.2.1 Compatible Apple LLVM 4.2 (clang-425.0.28)]'}
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