Same problem, now I get this:
Harpua:~ matthoffman$ sudo easy_install.py -f
http://www.turbogears.org/download/index.html --script-dir
/usr/local/bin TurboGears
Reading http://www.turbogears.org/download/index.html
Processing TurboGears
error: Couldn't find a setup script in TurboGears
Harpua:~ matthoffman$ sudo python easy_install.py -f
http://www.turbogears.org/download/index.html --script-dir
/usr/local/bin TurboGears
Please use the 'easy_install' script or executable instead.
(i.e., don't include the '.py' extension and don't use 'python -m')

Then I tried uninstalling setuptools and going from the begining ...
again same results
Mayby I did not uninstall setuptools correctly

WHY DOES THIS WORK ON MY PC BUT NOT MY LINUX OR OSX BOX!!!!

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