I have installed python-2.6.2.msi from python.org on a fresh install of XP. Installed PythonPackageManagerInstall-0_2.exe and the attempted to install setuptools 0.6c9 which failed. Package Manager attempts to install to C:\Python26\Scripts which does not exist. The python-2.6.2.msi creates a directory C:\Python26\Tools\Scripts. This cause PackageManager to fail the install. I also attempted to install yolk 0.4.1 which failed installation as well.
I created a directory C:\Python26\Scripts and was able to install setuptools and yolk. I think the directory structure changed, i.e Python2.5 vs Python2.6.
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I have installed python-2.6.2.msi from python.org on a fresh install of XP. Installed PythonPackageManagerInstall-0_2.exe and the attempted to install setuptools 0.6c9 which failed. Package Manager attempts to install to C:\Python26\Scripts which does not exist. The python-2.6.2.msi creates a directory C:\Python26\Tools\Scripts. This cause PackageManager to fail the install. I also attempted to install yolk 0.4.1 which failed installation as well.
I created a directory C:\Python26\Scripts and was able to install setuptools and yolk. I think the directory structure changed, i.e Python2.5 vs Python2.6.
The Python Package Manager installs itself into "\Program Files\Python Package Manager" directory.
If setuptools isn't being installed properly, delete setuptools and manually remove the ez* scripts from C:\Python26\Scripts and start again.
This is a problem with setuptools. Try again.