Virtualenv returning a 'No such file or directory...' error

I had the same on debian. Upgrade python-virtualenv resolves the problem.

apt-get upgrade python-virtualenv

virtualenv looks to be trying to install pip using easy_install from a local archive. Can you verify that it exists at /usr/local/lib/pytho...pport/pip-1.1.tar.gz ?

You may want to ensure that you have pip properly install beforehand. Try: easy_install -U pip first.