You need to download a recent version of ez_setup.py and run it from a directory that is not under the TG code tree (anywhere else is fine). Running ez_setup.py in this manner also fixed the issue I saw in this thread: http://groups.google.com/group/turbogears/browse_thread/thread/9385683f6bdf305/22b64d0e99d39f5d?q=sdelatorre&rnum=1#22b64d0e99d39f5d
