I also faced this error while trying tutorial on my debian (mostly
testing with some unstable).

The problem can be caused by too old setuptools.

Some details:

1) I easy_installed pylons, then created project as in the tutorial

2) App refused to start exactly as above

3) I noticed that the helloworld.egg-info directory is *ALMOST EMPTY*
(it contained only paste_deploy_config.ini_tmpl  paster_plugins.txt)

4) Then I tried issuing setup.py egg-info and got error

The required version of setuptools (>=0.6c6) is not available, and
can't be installed while this script is running. Please install
 a more recent version first.

(Currently using setuptools 0.6c3 (/usr/lib/python2.4/site-packages))

5) So I easy_install-ed newer setuptools and reissued setup.py egg-
info, as I noticed 6 new files were created in helloworld.egg-info
directory: PKG-INFO, SOURCES.txt, dependency_links.txt,
entry_points.txt, requires.txt and top_level.txt

6) now the app starts.

7) I also tried creating the new app again in other dir, and now
everything is OK.

So the final diagnosis is: when (too) old setuptools are in use,
'paster create' silently (there was no error message) fails to create
some files.


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