About the error code
According to python documentation:
This module makes available standard errno system symbols. The value of each symbol is the corresponding integer value. The names and descriptions are borrowed from linux/include/errno.h, which should be pretty all-inclusive.
Error code 1 is defined in errno.h and means Operation not permitted.
About your error
Your setuptools do not appear to be installed. Just follow the Installation Instructions from the pypi website.
If it's already installed, try
pip install --upgrade setuptools
If it's already up to date, check that the module ez_setup is not missing. If it is, then
pip install ez_setup
Then try again
pip install unroll
If it's still not working, maybe pip didn't install/upgrade setup_tools properly so you might want to try
easy_install -U setuptools
and again
pip install unroll