easy_install.exe Permission Denied on Windows 8
You can read the solution here.
Run the install.
After the error copy the easy_install .exe and .py to a temp dir (i.e. c:\temp).
Run the install again from there.
On windows, the easy_install binary is in-use during install so it can't overwrite itself. (Easy_install itself is part of the setuptools you're trying to install with itself ;)
Another way would be to use the other python package manager: Pip.
easy_install pip pip install --upgrade setuptools
This gets around the "in-use" problem without having to move files around.