Problem installing Pylons on OS X

[trihaitran]

I am reading chapter two of the Pylons book. In the text I am told to run:

$ python virtualenv.py --no-site-packages env

This is what I got back:

$ python virtualenv.py --no-site-packages env
New python executable in env/bin/python
Installing setuptools...........
  Complete output from command env/bin/python -c "#!python
\"\"\"Bootstrap setuptoo...
 
 
 
 
" --always-copy -U setuptools:
  Traceback (most recent call last):
  File "<string>", line 270, in <module>
  File "<string>", line 198, in main
  File "/Library/Python/2.5/site-packages/setuptools-0.6c9-py2.5.egg/setuptools/__init__.py", line 2, in <module>
  File "/Library/Python/2.5/site-packages/setuptools-0.6c9-py2.5.egg/setuptools/extension.py", line 1, in <module>
  File "/Users/haitran/Desktop/env/lib/python2.5/distutils/__init__.py", line 14, in <module>
    exec open(os.path.join(distutils_path, '__init__.py')).read()
IOError: [Errno 2] No such file or directory: '/System/Library/Frameworks/Python.framework/Versions/2.5/lib/python2.5/distutils/__init__.py'
----------------------------------------
...Installing setuptools...done.
Traceback (most recent call last):
  File "virtualenv.py", line 1230, in <module>
    main()
  File "virtualenv.py", line 420, in main
    unzip_setuptools=options.unzip_setuptools)
  File "virtualenv.py", line 507, in create_environment
    install_setuptools(py_executable, unzip=unzip_setuptools)
  File "virtualenv.py", line 295, in install_setuptools
    cwd=cwd)
  File "virtualenv.py", line 481, in call_subprocess
    % (cmd_desc, proc.returncode))
OSError: Command env/bin/python -c "#!python
\"\"\"Bootstrap setuptoo...
 
 
 
 
" --always-copy -U setuptools failed with error code 1

What does this mean? I know this must be an easy problem since it's the first thing in the book, but this makes no sense to me. I am running Python 2.5.1 on Mac OS 10.5.7.