I installed docker-machine 0.1.0 and docker-compose 1.1.0 on Mac OS 10.8.5.
Docker-machine is running normally and able to connect by docker-machine ssh.
If you are on Linux you may not have docker-machine installed since it is only installed by default on Windows and Mac computers.
If so you will need to got to: https://docs.docker.com/machine/install-machine/ to find instructions for how to install it on your version of Linux.
After installing, retry running docker-compose up before trying anything listed above.
Hope this helps someone. This worked for my devilbox installation in Fedora 25.