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This article was a huge help: http://evadeflow.com/2010/09/easy_install-through-a-proxy-server/
Basically, what I learned is that you need to set both the http_proxy and https_proxy for setuptools easy_install to work.
It's worth mentioning I'm using this version of Python 2.7 on Windows 7 64-bit: http://www.activestate.com/activepython
From the Windows command prompt, I first set the two environment variables:
c:\> set http_proxy=<user>:<password>@<proxy_ip_address>:<port>
c:\> set https_proxy=<user>:<password>@<proxy_ip_address>:<port>
Then, I was able to run:
easy_install pyreadline
easy_install ipython[all]
Which allowed me to start using iPython, which is awesome :)
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