In a buildout with an lxml section which uses z3c.recipe.staticlxml, i get:
"ImportError: No module named setuptools.command.easy_install"
I was able to work around it by creating a virtualenv without Distribute, installing the old setuptools in there, and using this Python version to do the buildout.
Perhaps the recipe zc.recipe.staticlxml is wrong here, but as Distribute is going to be a drop-in replacement for distutils, i thought this might be a bug.
Apart from this, Distribute works like a charm for me!
<module 'setuptools.dist' from '/usr/local/lib/python2.6/dist-packages/distribute-0.6.3-py2.6.egg/setuptools/dist.pyc'>