ve_mgr: upgrade distribute before calling pip install

otherwise installing MySQL can fail
Change project_settings to most common settings

by default.  Less common settings exist but are commented out.
update local settings, and add extra ones
Always do migrations on update_db

whether or not we have apps in the root that use them.  Apps we've
pulled in via pip might need to be migrated.
Fix requirements to fabric 1.4

until we've worked out why 1.7 fails