Upon further inspection the problem seems to be:
With python-setuptools 0.6c9-0ubuntu5
/usr/lib/python2.6/dist-packages/setuptools.egg-info/ is a directory and
contains symlinks to the shared files.
With python-setuptools 0.6.8-1ubuntu1
/usr/lib/python2.6/dist-packages/setuptools.egg-info/ is a symlink to a file.
But the upgrade leaves only a empty directory causing the problem.
--
python-setuptools: import setuptools returns ValueError: ("Missing 'Version:'
...)
https://bugs.launchpad.net/bugs/490731
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