diff --git a/install_full/ubuntu/airtime-full-install b/install_full/ubuntu/airtime-full-install
index 31c9874cc..b27cb5fb6 100755
--- a/install_full/ubuntu/airtime-full-install
+++ b/install_full/ubuntu/airtime-full-install
@@ -37,9 +37,6 @@ if [ "$?" -ne "0" ]; then
    exit 1
 fi
 
-#install virtualenv 1.6.3
-easy_install virtualenv==1.6.3
-
 # Install phing
 sudo pear channel-discover pear.phing.info
 sudo pear install phing/phing-2.4.2
diff --git a/install_minimal/3rd_party/distribute-0.6.10.tar.gz b/install_minimal/3rd_party/distribute-0.6.10.tar.gz
new file mode 100644
index 000000000..1a36bc5b0
Binary files /dev/null and b/install_minimal/3rd_party/distribute-0.6.10.tar.gz differ
diff --git a/install_minimal/airtime-install b/install_minimal/airtime-install
index b497806cf..cc0765b8a 100755
--- a/install_minimal/airtime-install
+++ b/install_minimal/airtime-install
@@ -15,7 +15,10 @@ if [ ! -d "$VIRTUAL_ENV_DIR" ]; then
     if [ "$?" -eq "0" ]; then
         sudo virtualenv --extra-search-dir=${SCRIPTPATH}/3rd_party --no-site-package -p /usr/bin/python2.6 /usr/lib/airtime/airtime_virtualenv
     else
-        sudo virtualenv --distribute --no-site-package -p /usr/bin/python2.6 /usr/lib/airtime/airtime_virtualenv
+        # copy distibute-0.6.10.tar.gz to /usr/share/python-virtualenv/
+        # this is due to the bug in virtualenv 1.4.9
+        cp ${SCRIPTPATH}/3rd_party/distribute-0.6.10.tar.gz /usr/share/python-virtualenv/ 
+        sudo virtualenv --no-site-package -p /usr/bin/python2.6 /usr/lib/airtime/airtime_virtualenv
     fi
     
     echo -e "\n*** Installing Python Libraries ***"