Mac osx lion, virtualenv, pil install - gcc error

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I have just completed the xcode install, mac osx lion. Upon completion I attempted to install PIL in a virtual enviroment using pip, easy_install and home brew. All three are erring out. pip install give the following error:

pip `

unable to execute gcc-4.0: No such file or directory

error: command 'gcc-4.0' failed with exit status 1

`

easy_install unable to execute gcc-4.0: No such file or directory error: Setup script exited with error: command 'gcc-4.0' failed with exit status 1

home brew Error: Failed executing: python setup.py build_ext

I am not really sure where to go from here.

Thanks, CG

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