installing setuptools manually to ensure latest version. pip installing ...

...stevedore to avoid install problems

I was hitting this problem when attempting to use the template with a precise64 image: https://bitbucket.org/dhellmann/virtualenvwrapper/issue/199/packaging-problem-unable-to-use

Not totally sure what the problem is, but as a respondent mentions, using pip to install fixes the issue.

Also, the setuptools package that apt was downloading was 0.6. The current wheel support in pip requires >= 0.8,   so I manually installed the more current version.