Index: workingenv.py
===================================================================
--- workingenv.py	(revision 3125)
+++ workingenv.py	(working copy)
@@ -1667,7 +1667,8 @@
 # setuptools should be on sys.path already from a .pth file
 
 for path in sys.path:
-    if 'setuptools' in path:
+    pth, pkg = os.path.split(path)
+    if pkg.startswith('setuptools'):
         setuptools_path = os.path.join(path, 'setuptools')
         __path__.insert(0, setuptools_path)
         break