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.
Try running dockerd or sudo dockerdif required first to start daemon. If you start dockerd with sudo you may want to run docker-compose up with sudo also. otherwise it's fine.
Working solution from https://github.com/docker/compose/issues/4181