Please edit the title of your bug report to something more specific. Check out 
other bug reports to for fine examples.

Here is what I get when I try to run pitivi without python-setuptools installed:

Traceback (most recent call last):
  File "/usr/bin/pitivi", line 113, in <module>
    _run_pitivi()
  File "/usr/bin/pitivi", line 102, in _run_pitivi
    import pitivi.pitivi as pitivi
  File "/usr/share/pitivi/python/pitivi/pitivi.py", line 29, in <module>
    from ui import mainwindow
  File "/usr/share/pitivi/python/pitivi/ui/mainwindow.py", line 49, in <module>
    from pluginmanagerdialog import PluginManagerDialog
  File "/usr/share/pitivi/python/pitivi/ui/pluginmanagerdialog.py", line 30, in
<module>
    import pitivi.pluginmanager as pluginmanager
  File "/usr/share/pitivi/python/pitivi/pluginmanager.py", line 32, in <module>
    import pkg_resources
ImportError: No module named pkg_resources

pitivi-0.11.1-2.fc8 has been pushed to the Fedora 8 testing repository.  If problems still persist, please make note of it in this bug report.
 If you want to test the update, you can install it with 
 su -c 'yum --enablerepo=updates-testing update pitivi'

This is fixed in pitivi-0.11.1-2.  Marian, can you confirm this and close this bug?

pitivi-0.11.1-2.fc8 has been pushed to the Fedora 8 stable repository.  If problems still persist, please make note of it in this bug report.

reappears in fedora 12

this still happens in fedora 11 as well