>From your error stack it appears you're using Python 3. I couldn't
find a definitive answer at http://pypi.python.org/pypi/virtualenv,
but virtualenv may not yet be compatible with Python 3.x.

I am able to run virtualenv under Python 2.6.2. Please install 2.6.x
and try again, let us know if it works.

Regards,

Philip

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