I had the same problem, but the solution was that I had two versions of setuptools: one was in / usr / local / lib / python 2.6 / dist-packages / distribute-0.6.8-py2.6.egg / , and one of them was in / usr / lib / python 2.6 / dist-packages /. the first was an obsolete version, but / usr / local / lib / python 2.6 / dist-packages was earlier in my path. I deleted the old one and it was good to go.
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