virtualenv failure

gistfile1.txt

jkakar@rex:~/src/fluidinfo/wikipedia-import$ virtualenv --no-site-packages env
New python executable in env/bin/python
Installing distribute...........
  Complete output from command /home/jkakar/src/fluidinfo/wik...ython -c "#!python
\"\"\"Bootstrap distribu...1:])
" --always-copy -U distribute:
  Extracting in /tmp/tmpyLN4wB
Traceback (most recent call last):
  File "<string>", line 477, in <module>
  File "<string>", line 473, in main
  File "<string>", line 73, in _install
  File "/usr/lib/python2.7/tarfile.py", line 1663, in open
    raise ReadError("file could not be opened successfully")
tarfile.ReadError: file could not be opened successfully
----------------------------------------
...Installing distribute...done.
Traceback (most recent call last):
  File "/usr/bin/virtualenv", line 3, in <module>
    virtualenv.main()
  File "/usr/lib/pymodules/python2.7/virtualenv.py", line 536, in main
    use_distribute=options.use_distribute)
  File "/usr/lib/pymodules/python2.7/virtualenv.py", line 626, in create_environment
    install_distribute(py_executable, unzip=unzip_setuptools)
  File "/usr/lib/pymodules/python2.7/virtualenv.py", line 367, in install_distribute
    _install_req(py_executable, unzip, distribute=True)
  File "/usr/lib/pymodules/python2.7/virtualenv.py", line 339, in _install_req
    cwd=cwd)
  File "/usr/lib/pymodules/python2.7/virtualenv.py", line 597, in call_subprocess
    % (cmd_desc, proc.returncode))
OSError: Command /home/jkakar/src/fluidinfo/wik...ython -c "#!python
\"\"\"Bootstrap distribu...1:])
" --always-copy -U distribute failed with error code 1