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I've tried using setuptools 0.7a1 in conjunction with Python
2.5b2 (r50877), and the problem still exists. setuptools'
extension commands still do not work (tested: rotate, alias,
egg_info, bdist_egg, test), that is, 'python2.5 setup.py
test' still fails with "error: invalid command 'test'".

Also, the code snippet in the bug report does not work. I am
sure Python is picking up setuptools 0.7a1 because the path
/opt/dev/python/2.5/lib/python2.5/site-packages/setuptools-0.7a1dev_r50755-py2.4.egg/setuptools/dist.py
appears in the traceback.