Comment by pekka.klarck:
Notice that you need to run `python install.py reinstall` not `python setup.py reinstall`.
`setup.py` is more-or-less standard Python setup script which doesn't know anything about re-installation. `install.py` is our custom script that uses `setup.py` for installation and implements re- and un-installation itself by simply removing all found RF files and dirs.
For more information: http://code.google.com/p/robotframework/wiki/Installation
