[Distutils] Problem installing setuptools under virtual python environment

[dan]

I am on a Cent OS shared system (i.e. I don't have root) with python
2.4 and am having trouble setting up setuptools in a virtual
environment.

I start by setting up the virtual environment:

$/usr/bin/python2.4 virtual-python.py --prefix=~/apps/python
Creating /fslhome/ddw28/apps/python/lib/python2.4
Creating /fslhome/ddw28/apps/python/lib/python2.4/site-packages
Creating /fslhome/ddw28/apps/python/include/python2.4
Creating /fslhome/ddw28/apps/python/bin
Copying /usr/bin/python2.4 to /fslhome/ddw28/apps/python/bin
You're now ready to download ez_setup.py, and run
/fslhome/ddw28/apps/python/bin/python ez_setup.py

then I add "~/apps/python/bin" to my PATH and run the setup script
with the following errors

$ sh setuptools-0.6c9-py2.4.egg
error: can't create or remove files in install directory

The following error occurred while trying to add or remove files in the
installation directory:

    [Errno 13] Permission denied:
'/usr/lib/python2.4/site-packages/test-easy-install-5267.write-test'

The installation directory you specified (via --install-dir, --prefix, or
the distutils default setting) was:

    /usr/lib/python2.4/site-packages/
...

I get the right answer when I run which:
$ which python
~/apps/python/bin/python

I also created a symlink ~/apps/python/bin/python2.4 ->
~/apps/python/bin/python and get the same errors (this fixed a similar
problem I had before on a different machine).

Can anybody think of what might be going wrong?

Thanks,
dan