>>> Unpacking source...
>>> Unpacking lxml-2.2.3.tgz to /var/tmp/portage/dev-python/lxml-2.2.3/work
>>> Source unpacked in /var/tmp/portage/dev-python/lxml-2.2.3/work
>>> Preparing source in /var/tmp/portage/dev-python/lxml-2.2.3/work/lxml-2.2.3 ...
 * Applying lxml-2.0.3-no-fake-pyrex.patch ...
  [ ok ]
>>> Source prepared.
>>> Configuring source in /var/tmp/portage/dev-python/lxml-2.2.3/work/lxml-2.2.3 ...
>>> Source configured.
>>> Compiling source in /var/tmp/portage/dev-python/lxml-2.2.3/work/lxml-2.2.3 ...
 * Building of dev-python/lxml-2.2.3 with Python 2.6...
python2.6 setup.py build -b build-2.6
Traceback (most recent call last):
  File "setup.py", line 17, in <module>
    pkg_resources.require("setuptools>=0.6c5")
  File "/usr/lib/python2.6/site-packages/pkg_resources.py", line 621, in require
    needed = self.resolve(parse_requirements(requirements))
  File "/usr/lib/python2.6/site-packages/pkg_resources.py", line 519, in resolve
    raise DistributionNotFound(req)  # XXX put more info here
pkg_resources.DistributionNotFound: setuptools>=0.6c5
 * 
 * ERROR: dev-python/lxml-2.2.3 failed.
 * Call stack:
 *               ebuild.sh, line   49:  Called src_compile
 *             environment, line 3396:  Called distutils_src_compile
 *             environment, line  823:  Called python_execute_function 'building'
 *             environment, line 2978:  Called die
 * The specific snippet of code:
 *                       die "${failure_message}";
 *  The die message:
 *   Building failed with Python 2.6 in building() function
 * 
 * If you need support, post the topmost build error, and the call stack if relevant.
 * A complete build log is located at '/var/tmp/portage/dev-python/lxml-2.2.3/temp/build.log'.
 * The ebuild environment file is located at '/var/tmp/portage/dev-python/lxml-2.2.3/temp/environment'.
 *

uname -a
Linux lunix 2.6.31-gentoo-r5osvn #3 SMP Mon Nov 9 10:32:38 ICT 2009 i686 Intel(R) Core(TM)2 Duo CPU T7300 @ 2.00GHz GenuineIntel GNU/Linux