[Distutils] setuptools passing arguments/settings to dependencies' dependencies

[Kent]

Something seems to have changed with a recent release of setuptools.
I recently upgraded to -0.6c11 from c9.

Under c9, my setup.cfg could specify this:

[easy_install]
find_links = ../../thirdparty

in order to direct setuptools to install from the ../../thirdparty
directory instead of searching the internet.  This worked for my
project's dependencies and the dependencies' dependencies.

Now, under c11, settings in the setup.cfg only pass to my project's
direct dependencies (install_requires=[] list).

They no longer are passed to those dependencies' dependencies.

What happened?  I've googled and googled and am having no luck.  Is my
assertion correct?

Thanks to anyone who can help.

P.S. I also can't find an official PEAK software setuptools forum...
is this the best forum to ask this question?