assuming you have distribute installed as an egg dir, you get this error trying to use --distribute
~$ virtualenv venv --distribute
...snip...
OSError: Command /home/qwcode/d/bin/python -c "# Called from virtua...main(sys.argv[1:])
" /usr/local/lib/pytho...ute-0.6.28-py2.6.egg failed with error code 1
the problem arises from this change: e8fbbea
it's trying to look for distribute egg files to install from and finds the distribute egg directory.
these errors are showing in the pip travis builds: https://travis-ci.org/pypa/pip/jobs/3335283