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:
Useful workaround from the Python bug ticket for anybody else with this issue:
virtualenv venv --no-setuptools
Alternatively, downgrade to 3.3.3. This should be fixed properly in 3.3.5
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:
virtualenv ENV --system-site-packages
Annoyingly, it looks like this might be a Python bug. https://github.com/pypa/virtualenv/issues/564 references http://bugs.python.org/issue20621, which is still open but looks like it's going to be fixed in 3.3.5.
Dropping my Python installation back down to 3.3.3 fixed the issue.