|This is a 180 from the new hotness.|
$ pip uninstall distribute setuptoolsThen install the newest version of setuptools and pip. Finally install wheels.
$ pip install setuptools pip wheelsDistribure-0.7.x which was meant as a transition between setuptools-0.6 and 0.8 is no longer necessary since setuptools-0.9.8 is out. Pip is at 1.4 with support for both setuptools and wheels.