compile() got an unexpected keyword argument 'c_only'

When I run

python setup2.py install

which has been working fine with 0.9 with the new 0.9.1 I get the 
following error from distutils:

Traceback (most recent call last):
 File "setup2.py", line 15, in ?
   cmdclass = {'build_ext': build_ext}
 File "c:\python23\lib\distutils\core.py", line 149, in setup
   dist.run_commands()
 File "c:\python23\lib\distutils\dist.py", line 907, in run_commands
   self.run_command(cmd)
 File "c:\python23\lib\distutils\dist.py", line 927, in run_command
   cmd_obj.run()
 File "c:\python23\lib\distutils\command\install.py", line 501, in run
   self.run_command('build')
 File "c:\python23\lib\distutils\cmd.py", line 333, in run_command
   self.distribution.run_command(command)
 File "c:\python23\lib\distutils\dist.py", line 927, in run_command
   cmd_obj.run()
 File "c:\python23\lib\distutils\command\build.py", line 107, in run
   self.run_command(cmd_name)
 File "c:\python23\lib\distutils\cmd.py", line 333, in run_command
   self.distribution.run_command(command)
 File "c:\python23\lib\distutils\dist.py", line 927, in run_command
   cmd_obj.run()
 File "c:\python23\lib\distutils\command\build_ext.py", line 269, in run
   self.build_extensions()
 File "c:\python23\lib\distutils\command\build_ext.py", line 395, in 
build_extensions
   self.build_extension(ext)
 File "c:\python23\lib\distutils\command\build_ext.py", line 432, in 
build_extension
   sources = self.swig_sources(sources)
 File "c:\python23\lib\site-packages\Pyrex\Distutils\build_ext.py", 
line 52, in swig_sources
   self.pyrex_compile(source)
 File "c:\python23\lib\site-packages\Pyrex\Distutils\build_ext.py", 
line 66, in pyrex_compile
   result = Pyrex.Compiler.Main.compile(source, c_only=1)
TypeError: compile() got an unexpected keyword argument 'c_only'

Some distutils incompatibility? This is with Python2.3 on XP.