title: How to get virtualenv to work after upgrading to Lion?
body: <p>I just upgraded from SnowLeapord to Lion and now cannot create virtualenvs. I understand that there are new Python installations after the upgrade and no site packages and have tried installing pip and virtualenv again as well as upgrading to Xcode4 but I always get this error:</p>
  
  <pre><code>~ &gt; virtualenv --distribute env
  New python executable in env/bin/python
  Installing distribute........
  Complete output from command /Users/jaderberg/env/bin/python -c "#!python
  \"\"\"Bootstra... main(sys.argv[1:])
  " --always-copy -U distribute:
  Traceback (most recent call last):
  File "&lt;string&gt;", line 23, in &lt;module&gt;
  File "/Users/jaderberg/env/lib/python2.7/distutils/__init__.py", line 16, in &lt;module&gt;
  exec(open(os.path.join(distutils_path, '__init__.py')).read())
  IOError: [Errno 2] No such file or directory: 'System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/distutils/__init__.py'
  ----------------------------------------
  ...Installing distribute...done.
  Traceback (most recent call last):
  File "/usr/local/bin/virtualenv", line 9, in &lt;module&gt;
  load_entry_point('virtualenv==1.7.2', 'console_scripts', 'virtualenv')()
  File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 942, in main
  never_download=options.never_download)
  File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 1049, in create_environment
  search_dirs=search_dirs, never_download=never_download)
  File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 603, in install_distribute
  search_dirs=search_dirs, never_download=never_download)
  File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 570, in _install_req
  cwd=cwd)
  File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 1020, in call_subprocess
  % (cmd_desc, proc.returncode))
  OSError: Command /Users/jaderberg/env/bin/python -c "#!python
  \"\"\"Bootstra... main(sys.argv[1:])
  " --always-copy -U distribute failed with error code 1
  </code></pre>
  
  <p>I am a bit of a unix/python novice and just cannot work out how to get this working. Any ideas? Without using the --distribute tag I get this error:</p>
  
  <pre><code>~ > virtualenv env
  New python executable in env/bin/python
  Installing setuptools.............
    Complete output from command /Users/jaderberg/env/bin/python -c "#!python
  \"\"\"Bootstra...sys.argv[1:])
  
  
  
  
  
  
  " /Library/Python/2.7/...ols-0.6c11-py2.7.egg:
    Traceback (most recent call last):
    File "", line 279, in 
    File "", line 207, in main
    File "/Library/Python/2.7/site-packages/distribute-0.6.27-py2.7.egg/setuptools/__init__.py", line 2, in 
      from setuptools.extension import Extension, Library
    File "/Library/Python/2.7/site-packages/distribute-0.6.27-py2.7.egg/setuptools/extension.py", line 2, in 
      import distutils.core
    File "/Users/jaderberg/env/lib/python2.7/distutils/__init__.py", line 16, in 
      exec(open(os.path.join(distutils_path, '__init__.py')).read())
  IOError: [Errno 2] No such file or directory: '/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/distutils/__init__.py'
  ----------------------------------------
  ...Installing setuptools...done.
  Traceback (most recent call last):
    File "/usr/local/bin/virtualenv", line 9, in 
      load_entry_point('virtualenv==1.7.2', 'console_scripts', 'virtualenv')()
    File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 942, in main
      never_download=options.never_download)
    File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 1052, in create_environment
      search_dirs=search_dirs, never_download=never_download)
    File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 598, in install_setuptools
      search_dirs=search_dirs, never_download=never_download)
    File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 570, in _install_req
      cwd=cwd)
    File "/Library/Python/2.7/site-packages/virtualenv-1.7.2-py2.7.egg/virtualenv.py", line 1020, in call_subprocess
      % (cmd_desc, proc.returncode))
  OSError: Command /Users/jaderberg/env/bin/python -c "#!python
  \"\"\"Bootstra...sys.argv[1:])
  
  
  " /Library/Python/2.7/...ols-0.6c11-py2.7.egg failed with error code 1
  </code></pre>