virtualenv problem on win32

[Danny Shevitz]

Howdy,

I'm trying to use virtualenv for the first time and having endless grief. 
I have upgraded my python distribution to the latest 2.7 distribution and it
is completely clean. I have prepended my path environment variable with
c:\python27 and c:\python27\scripts. 
I have installed:
setuptools 0.6c11 
virtualenv 1.6 
windows extensions (I have read some posts that this might be important...)

When I try to create a virtual environment at the shell prompt:
virtualenv ENV

I get the following error:

###########################################################
d:\>virtualenv ENV
New python executable in ENV\Scripts\python.exe
Installing setuptools................................................
  Complete output from command d:\ENV\Scripts\python.exe -c "#!python
\"\"\"Bootstra...sys.argv[1:])






" c:\python27\lib\site...ols-0.6c11-py2.7.egg:
  Processing setuptools-0.6c11-py2.7.egg
creating d:\env\lib\site-packages\setuptools-0.6c11-py2.7.egg
Extracting setuptools-0.6c11-py2.7.egg to d:\env\lib\site-packages
Traceback (most recent call last):
  File "<string>", line 279, in <module>
  File "<string>", line 240, in main
  File "c:\python27\lib\site-packages\setuptools\command\easy_install.py", line
1712, in main
    with_ei_usage(lambda:
  File "c:\python27\lib\site-packages\setuptools\command\easy_install.py", line
1700, in with_ei_usage
    return f()
  File "c:\python27\lib\site-packages\setuptools\command\easy_install.py", line
1716, in <lambda>
    distclass=DistributionWithoutHelpCommands, **kw
  File "c:\python27\Lib\distutils\core.py", line 152, in setup
    dist.run_commands()
  File "c:\python27\Lib\distutils\dist.py", line 953, in run_commands
    self.run_command(cmd)
  File "c:\python27\Lib\distutils\dist.py", line 972, in run_command
    cmd_obj.run()
  File "c:\python27\lib\site-packages\setuptools\command\easy_install.py", line
211, in run
    self.easy_install(spec, not self.no_deps)
  File "c:\python27\lib\site-packages\setuptools\command\easy_install.py", line
427, in easy_install
    return self.install_item(None, spec, tmpdir, deps, True)
  File "c:\python27\lib\site-packages\setuptools\command\easy_install.py", line
476, in install_item
    dists = self.install_eggs(spec, download, tmpdir)
  File "c:\python27\lib\site-packages\setuptools\command\easy_install.py", line
619, in install_eggs
    return [self.install_egg(dist_filename, tmpdir)]
  File "c:\python27\lib\site-packages\setuptools\command\easy_install.py", line
693, in install_egg
    (os.path.basename(egg_path),os.path.dirname(destination)))
  File "c:\python27\Lib\distutils\cmd.py", line 349, in execute
    util.execute(func, args, msg, dry_run=self.dry_run)
  File "c:\python27\Lib\distutils\util.py", line 401, in execute
    func(*args)
  File "c:\python27\lib\site-packages\setuptools\command\easy_install.py", line
996, in unpack_and_compile
    unpack_archive(egg_path, destination, pf)
  File "c:\python27\lib\site-packages\setuptools\archive_util.py", line 67, in u
npack_archive
    driver(filename, extract_dir, progress_filter)
  File "c:\python27\lib\site-packages\setuptools\archive_util.py", line 135, in
unpack_zipfile
    z = zipfile.ZipFile(filename)
  File "c:\python27\Lib\zipfile.py", line 712, in __init__
    self._GetContents()
  File "c:\python27\Lib\zipfile.py", line 746, in _GetContents
    self._RealGetContents()
  File "c:\python27\Lib\zipfile.py", line 786, in _RealGetContents
    raise BadZipfile, "Bad magic number for central directory"
zipfile.BadZipfile: Bad magic number for central directory
----------------------------------------
...Installing setuptools...done.
Traceback (most recent call last):
  File "c:\python27\scripts\virtualenv-script.py", line 8, in <module>
    load_entry_point('virtualenv==1.6', 'console_scripts', 'virtualenv')()
  File "c:\python27\lib\site-packages\virtualenv-1.6-py2.7.egg\virtualenv.py", l
ine 745, in main
    prompt=options.prompt)
  File "c:\python27\lib\site-packages\virtualenv-1.6-py2.7.egg\virtualenv.py", l
ine 843, in create_environment
    install_setuptools(py_executable, unzip=unzip_setuptools)
  File "c:\python27\lib\site-packages\virtualenv-1.6-py2.7.egg\virtualenv.py", l
ine 571, in install_setuptools
    _install_req(py_executable, unzip)
  File "c:\python27\lib\site-packages\virtualenv-1.6-py2.7.egg\virtualenv.py", l
ine 547, in _install_req
    cwd=cwd)
  File "c:\python27\lib\site-packages\virtualenv-1.6-py2.7.egg\virtualenv.py", l
ine 813, in call_subprocess
    % (cmd_desc, proc.returncode))
OSError: Command d:\ENV\Scripts\python.exe -c "#!python
\"\"\"Bootstra...sys.argv[1:])

" c:\python27\lib\site...ols-0.6c11-py2.7.egg failed with error code 1
###########################################################

does anyone know what is going on?

thanks,
Danny