Distribute specifically prohibits installation of Setuptools 0.7 from Distribute 0.6. There are then two options for upgrading.
Note that after upgrading using either technique, the only option to downgrade to either version is to completely uninstall Distribute and Setuptools 0.7 versions before reinstalling an 0.6 release.
Use Distribute 0.7
------------------
The PYPA has put together a compatibility wrapper, a new release of Distribute version 0.7. This package will install over Distribute 0.6.x installations and will replace Distribute with a simple wrapper that requires Setuptools 0.7 or later. This technique is experimental, but initial results indicate this technique is the easiest upgrade path.
Uninstall
---------
First, completely uninstall Distribute. Since Distribute does not have an automated installation routine, this process is manual. Follow the instructions in the README for uninstalling.
How do I upgrade from Setuptools 0.6?
=====================================
There are no special instructions for upgrading over older versions of Setuptools. Simply use `easy_install -U` or run the latest `ez_setup.py`.
