> Thanks for the follow-up. One more triage question for you: were  
> any of the
> files in the repo already gzip'ped? I think there may be a  
> currently open bug
> when that's that the case.

The ones mentioned in the error messages -- setuptools-0.6c7.egg for  
example -- are zipped:

setuptools-0.6c7.egg:       Zip archive data, at least v1.0 to extract

(Note: not gzipped.)

Regards,

Zooko