diff --git a/setup2.py b/setup2.py
index 0e54f87..d91bdf7 100755
--- a/setup2.py
+++ b/setup2.py
@@ -61,6 +61,7 @@ from setupbase import (
     find_data_files,
     check_for_dependencies,
     record_commit_info,
+    bdist_wininst_options,
 )
 from setupext import setupext
 
@@ -197,27 +198,16 @@ if 'setuptools' in sys.modules:
     if not setupext.check_for_readline():
         if sys.platform == 'darwin':
             requires.append('readline')
-        elif sys.platform.startswith('win') and sys.maxsize < 2**32:
-            # only require pyreadline on 32b Windows, due to 64b bug in pyreadline:
-            # https://bugs.launchpad.net/pyreadline/+bug/787574
-            requires.append('pyreadline')
+        elif sys.platform.startswith('win') and \
+          not 'bdist_wininst' in sys.argv:
+          # We must avoid listing pyreadline when *building* the binary windows
+          # installers, because if we do so, then at runtime ipython will fail
+          # to find a pyreadline that could have been installed without
+          # setuptools (such as the one from the binary pyreadline installer).
+          requires.append('pyreadline')
         else:
             pass
-            # do we want to install readline here?
-
-    # Script to be run by the windows binary installer after the default setup
-    # routine, to add shortcuts and similar windows-only things.  Windows
-    # post-install scripts MUST reside in the scripts/ dir, otherwise distutils
-    # doesn't find them.
-    if 'bdist_wininst' in sys.argv:
-        if len(sys.argv) > 2 and \
-               ('sdist' in sys.argv or 'bdist_rpm' in sys.argv):
-            print >> sys.stderr, "ERROR: bdist_wininst must be run alone. Exiting."
-            sys.exit(1)
-        setup_args['scripts'] = [pjoin('scripts','ipython_win_post_install.py')]
-        setup_args['options'] = {"bdist_wininst":
-                                 {"install_script":
-                                  "ipython_win_post_install.py"}}
+    setup_args.update(bdist_wininst_options())
 else:
     # If we are running without setuptools, call this function which will
     # check for dependencies an inform the user what is needed.  This is
@@ -235,9 +225,11 @@ setup_args['package_data'] = package_data
 setup_args['data_files'] = data_files
 setup_args.update(setuptools_extra_args)
 
+
 def main():
     setup(**setup_args)
     cleanup()
 
+
 if __name__ == '__main__':
     main()
diff --git a/setup3.py b/setup3.py
index a7bc9ab..b6f4bf0 100644
--- a/setup3.py
+++ b/setup3.py
@@ -8,26 +8,16 @@ from setupbase import (setup_args,
                        find_packages,
                        find_package_data,
                        record_commit_info,
+                       bdist_wininst_options,
                        )
     
 setup_args['entry_points'] = find_scripts(True, suffix='3')
 setup_args['packages'] = find_packages()
 setup_args['package_data'] = find_package_data()
-setup_args['cmdclass'] = {'build_py': record_commit_info('IPython', build_cmd=build_py)}
+setup_args['cmdclass'] = {'build_py': 
+                          record_commit_info('IPython', build_cmd=build_py)}
 
-# Script to be run by the windows binary installer after the default setup
-# routine, to add shortcuts and similar windows-only things.  Windows
-# post-install scripts MUST reside in the scripts/ dir, otherwise distutils
-# doesn't find them.
-if 'bdist_wininst' in sys.argv:
-    if len(sys.argv) > 2 and \
-           ('sdist' in sys.argv or 'bdist_rpm' in sys.argv):
-        print >> sys.stderr, "ERROR: bdist_wininst must be run alone. Exiting."
-        sys.exit(1)
-    setup_args['scripts'] = [os.path.join('scripts','ipython_win_post_install.py')]
-    setup_args['options'] = {"bdist_wininst":
-                             {"install_script":
-                              "ipython_win_post_install.py"}}
+setup_args.update(bdist_wininst_options())
 
 def main():
     setup(use_2to3 = True, **setup_args)
diff --git a/setupbase.py b/setupbase.py
index b6e700c..4846d82 100644
--- a/setupbase.py
+++ b/setupbase.py
@@ -358,3 +358,32 @@ def record_commit_info(pkg_dir, build_cmd=build_py):
                     'commit = "%s"\n' % repo_commit.decode('ascii'),
                 ])
     return MyBuildPy
+
+#-----------------------------------------------------------------------------
+# Misc. utilities common to setup2/3
+#-----------------------------------------------------------------------------
+
+def bdist_wininst_options():
+    """Options to setup specific to the creation of Windows binary installer.
+    """
+    
+    setup_args = {}
+
+    if 'bdist_wininst' not in sys.argv:
+        return setup_args
+
+    # If we're building a binary Windows installer, a few extra flags are
+    # needed.  Script to be run by the installer after the default setup
+    # routine, to add shortcuts and similar windows-only things.  Windows
+    # post-install scripts MUST reside in the scripts/ dir, otherwise distutils
+    # doesn't find them.
+    if len(sys.argv) > 2 and \
+           ('sdist' in sys.argv or 'bdist_rpm' in sys.argv):
+        print >> sys.stderr, "ERROR: bdist_wininst must be run alone. Exiting."
+        sys.exit(1)
+    setup_args['scripts'] = [os.path.join('scripts',
+                                          'ipython_win_post_install.py')]
+    setup_args['options'] = {"bdist_wininst":
+                             {"install_script":
+                              "ipython_win_post_install.py"}}
+    return setup_args