To make a python package, in setup.py, I have the following:
setup.py
setup( name=\'TowelStuff\', version=\'0.1.0\', author=\'J. Random Hacke
You need to be using setuptools instead of distutils.
Near the top of your script, try replacing
from distutils.core import setup
with
from setuptools import setup
try: from setuptools import setup except ImportError: from distutils.core import setup