(I was also getting this until I used easy_install to upgrade)

What is supposed to happen with stuff that used to do `use_setuptools()` in their setup.py now?

I upgraded to setuptools 0.7.2, but now if I try to install a thing that has that in the setup.py, it seems to want to try and install distribute, and I get:

Downloading/unpacking pudb (from -r /Users/Julian/.local/share/virtualenvs/requirements-every-virtualenv.txt (line 2))
  Using download cache from /Users/Julian/Library/Caches/pip/https%3A%2F%2Fpypi.python.org%2Fpackages%2Fsource%2Fp%2Fpudb%2Fpudb-2013.2.tar.gz
  Running setup.py egg_info for package pudb
    Downloading http://pypi.python.org/packages/source/d/distribute/distribute-0.6.35.tar.gz
    Extracting in /var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3
    Now working in /var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35
    Building a Distribute egg in /Users/Julian/.local/share/virtualenvs/great/build/pudb
    Traceback (most recent call last):
      File "setup.py", line 45, in <module>
        exec(init_file.read(), d)
      File "<string>", line 8, in <module>
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/__init__.py", line 2, in <module>
        from setuptools.extension import Extension, Library
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/extension.py", line 5, in <module>
        from setuptools.dist import _get_unpatched
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/dist.py", line 6, in <module>
        from setuptools.command.install import install
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/command/__init__.py", line 8, in <module>
        from setuptools.command import install_scripts
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/command/install_scripts.py", line 3, in <module>
        from pkg_resources import Distribution, PathMetadata, ensure_directory
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 2825, in <module>
        add_activation_listener(lambda dist: dist.activate())
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 710, in subscribe
        callback(dist)
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 2825, in <lambda>
        add_activation_listener(lambda dist: dist.activate())
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 2257, in activate
        self.insert_on(path)
      File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 2358, in insert_on
        "with distribute. Found one at %s" % str(self.location))
    ValueError: A 0.7-series setuptools cannot be installed with distribute. Found one at /Users/Julian/.local/share/virtualenvs/great/lib/python2.7/site-packages/setuptools-0.7.2-py2.7.egg
    /Users/Julian/.local/share/virtualenvs/great/build/pudb/distribute-0.6.35-py2.7.egg
    Traceback (most recent call last):
      File "<string>", line 16, in <module>
      File "/Users/Julian/.local/share/virtualenvs/great/build/pudb/setup.py", line 5, in <module>
        use_setuptools()
      File "distribute_setup.py", line 152, in use_setuptools
        return _do_download(version, download_base, to_dir, download_delay)
      File "distribute_setup.py", line 132, in _do_download
        _build_egg(egg, tarball, to_dir)
      File "distribute_setup.py", line 123, in _build_egg
        raise IOError('Could not build the egg.')
    IOError: Could not build the egg.
    Complete output from command python setup.py egg_info:
    Downloading http://pypi.python.org/packages/source/d/distribute/distribute-0.6.35.tar.gz

Extracting in /var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3

Now working in /var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35

Building a Distribute egg in /Users/Julian/.local/share/virtualenvs/great/build/pudb

Traceback (most recent call last):

  File "setup.py", line 45, in <module>

    exec(init_file.read(), d)

  File "<string>", line 8, in <module>

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/__init__.py", line 2, in <module>

    from setuptools.extension import Extension, Library

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/extension.py", line 5, in <module>

    from setuptools.dist import _get_unpatched

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/dist.py", line 6, in <module>

    from setuptools.command.install import install

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/command/__init__.py", line 8, in <module>

    from setuptools.command import install_scripts

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/setuptools/command/install_scripts.py", line 3, in <module>

    from pkg_resources import Distribution, PathMetadata, ensure_directory

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 2825, in <module>

    add_activation_listener(lambda dist: dist.activate())

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 710, in subscribe

    callback(dist)

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 2825, in <lambda>

    add_activation_listener(lambda dist: dist.activate())

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 2257, in activate

    self.insert_on(path)

  File "/private/var/folders/zc/bzrwlgxd51594q6lt1yrx5v00000gn/T/tmp8NepZ3/distribute-0.6.35/pkg_resources.py", line 2358, in insert_on

    "with distribute. Found one at %s" % str(self.location))

ValueError: A 0.7-series setuptools cannot be installed with distribute. Found one at /Users/Julian/.local/share/virtualenvs/great/lib/python2.7/site-packages/setuptools-0.7.2-py2.7.egg

/Users/Julian/.local/share/virtualenvs/great/build/pudb/distribute-0.6.35-py2.7.egg

Traceback (most recent call last):

  File "<string>", line 16, in <module>

  File "/Users/Julian/.local/share/virtualenvs/great/build/pudb/setup.py", line 5, in <module>

    use_setuptools()

  File "distribute_setup.py", line 152, in use_setuptools

    return _do_download(version, download_base, to_dir, download_delay)

  File "distribute_setup.py", line 132, in _do_download

    _build_egg(egg, tarball, to_dir)

  File "distribute_setup.py", line 123, in _build_egg

    raise IOError('Could not build the egg.')

IOError: Could not build the egg.

----------------------------------------
Command python setup.py egg_info failed with error code 1 in /Users/Julian/.local/share/virtualenvs/great/build/pudb
S