I released new versions of the python (v1.0.6) and application cookbook (v0.99.14) earlier today.
pip v1.1 removed the -E option, and now the preference is to use the pip in a virtualenv to install packages. This was resolved in COOK-1046 by Justin Huff0. This also affected the application::django recipe1, in that it used the -E option to install packages from the requirements.txt file, but the pip binary itself was not executed from the virtualenv.
I also updated these cookbooks in the django-quick-start guide2.
Joshua Timberman, Technical Program Manager
IRC, Skype, Twitter, Github: jtimberman