Replace distribute_setup.py with the latest ez_setup.py for setuptools 0.9.x.  Moved all the boilerplate for checking how to boostrap setuptools into a new module alongside setup.py called setuptools_boostrap.py, just to hide some of the ugliness contained therein.  It should be noted that with the latest version of ez_setup.py, as setuptools can't be used to upgrade itself, users with an outdated version of setuptools will be admonished to first uninstall their old setuptools.  This could be tricky if they get their setuptools from an OS system package.  But I would tell anyone with that old of a Python installation to either install their own Python distribution or use virtualenv.
Adding some notes to the installation troubleshooting regarding the implications of having an outdated setuptools.
Merge pull request #1197 from embray/ez_setup

Simplify logic at the top of setup.py