you are using zc.buildout==2.5 and you require zc.buildout==1.7.1.
you probably bootstrapped your installation with an old version of the bootstrap.py script; update the script using something like:
wget http://downloads.buildout.org/2/bootstrap.py -O bootstrap.py
and/or use:
python bootstrap.py --buildout-version=1.7.1
using Python from your virtualenv.
run buildout again.