[Answer]-Buildout and setuptools requirement

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Like said in a comment it seems that your system-wide version of 0.6c11 and bootstrap.py reqiures setuptools >= 0.7. Because messing with global packages is usually bad idea I would recommend using virtualenve and virtualevnwrapperfor development and installing all requirements inside virtual environments. On Linux systems both can be easily installed using package managers.
On Debian (and probably Ubuntu)

apt-get install python-virtualenv
apt-get install python-virtualenv

After installing all have to do is:

mkvirtualenv bar
pip install setuptools>=0.7

Then install all other packages that you need and you are ready to go.

UPDATE

If you don’t have root access virtualenv can be easily installed locally. See this
How to install virtualenv without using sudo? for details.

👤zero323

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