I have a fresh install of Python 3.3.4 on a Windows Server 2008 R2 machine. I\'ve successfully installed the latest versions of Setuptools, Pip and Virtualenv globally:
I know it says Update in bold at the bottom of your question, but my colleague and I both missed that you answered your own question.
So, in case anyone else might miss it, try the --system-site-packages flag. This worked for us:
--system-site-packages
virtualenv ENV --system-site-packages