I ran into the same issue. To fix it, you will need to update setuptools. Download the ez_setup.py script from http://www.turbogears.org/download/ez_setup.py and place it in a directory that is not in the TG code tree (anywhere else is fine). Run the script using the following command:
ez_setup.py -U setuptools After successfully upgrading setuptools, re-run the TG "setup.py install" command. Sean
