setup: copy in this fix from zetuptoolz and the accompanying new version number of zetuptoolz: http://tahoe-lafs.org/trac/zetuptoolz/ticket/1

setuptools-0.6c16dev2.egg/setuptools/__init__.py

@@ -6,8 +6,10 @@ from setuptools.depends import Require
 from distutils.core import Command as _Command
 from distutils.util import convert_path
 import os.path
+import os
+import sys
 
-__version__ = '0.6c16dev'
+__version__ = '0.6c16dev2'
 __all__ = [
     'setup', 'Distribution', 'Feature', 'Command', 'Extension', 'Require',
     'find_packages'
@@ -80,3 +82,9 @@ import distutils.filelist
 distutils.filelist.findall = findall    # fix findall bug in distutils.
 
 
+# sys.dont_write_bytecode was introduced in Python 2.6.
+if ((hasattr(sys, "dont_write_bytecode") and sys.dont_write_bytecode) or
+    (not hasattr(sys, "dont_write_bytecode") and os.environ.get("PYTHONDONTWRITEBYTECODE"))):
+    _dont_write_bytecode = True
+else:
+    _dont_write_bytecode = False

setuptools-0.6c16dev2.egg/setuptools/command/easy_install.py

@@ -11,7 +11,7 @@ __ http://peak.telecommunity.com/DevCenter/EasyInstall
 """
 import sys, os.path, zipimport, shutil, tempfile, zipfile, re, stat, random
 from glob import glob
-from setuptools import Command
+from setuptools import Command, _dont_write_bytecode
 from setuptools import __version__ as setuptools_version
 from setuptools.sandbox import run_setup
 from distutils import log, dir_util
@@ -1008,6 +1008,9 @@ See the setuptools documentation for the "develop" command for more info.
                 chmod(f, mode)
 
     def byte_compile(self, to_compile):
+        if _dont_write_bytecode:
+            self.warn('byte-compiling is disabled, skipping.')
+            return
         from distutils.util import byte_compile
         try:
             # try to make the byte compile messages quieter