Installing setuptools prior to installing python dependencies on Mac

Installing setuptools prior to installing python dependencies on Mac

I need to install a few python dependencies. To do so with 'easy install',
I want to install setuptools-0.6c11-py2.7.egg (md5) on my mac. I've
downloaded the egg file from here:
https://pypi.python.org/pypi/setuptools/0.6c11. Then I tried to install
via terminal:
sh setuptools-0.6c11-py2.7.egg
But I get an error message: "can't create or remove files in install
directory" (see here:
https://docs.google.com/file/d/0B6GUNg-8d30vblZhYnV3TjZwbDA/edit?usp=sharing).
Should I try another directory to proceed?