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It appears that with Python 3.2 (Windows 64-bit), the distutils upload -r command no longer accepts the repository section name, but instead only attempts to parse it as a URL. This is a regression from Python 2.7.
PS C:\Users\jaraco\projects\hgtools> python -m pdb setup.py sdist upload -r pypi
> c:\users\jaraco\projects\hgtools\setup.py(7)<module>()
-> """
(Pdb) c
running sdist
running egg_info
# lines elided
running upload
Submitting dist\hgtools-1.0b1.zip to pypi
Traceback (most recent call last):
 File "c:\python\lib\pdb.py", line 1556, in main
 pdb._runscript(mainpyfile)
 File "c:\python\lib\pdb.py", line 1437, in _runscript
 self.run(statement)
 File "c:\python\lib\bdb.py", line 392, in run
 exec(cmd, globals, locals)
 File "<string>", line 1, in <module>
 File "c:\users\jaraco\projects\hgtools\setup.py", line 7, in <module>
 """
 File "c:\python\lib\distutils\core.py", line 149, in setup
 dist.run_commands()
 File "c:\python\lib\distutils\dist.py", line 919, in run_commands
 self.run_command(cmd)
 File "c:\python\lib\distutils\dist.py", line 938, in run_command
 cmd_obj.run()
 File "c:\python\lib\distutils\command\upload.py", line 66, in run
 self.upload_file(command, pyversion, filename)
 File "c:\python\lib\distutils\command\upload.py", line 176, in upload_file
 raise AssertionError("unsupported schema "+schema)
AssertionError: unsupported schema
Uncaught exception. Entering post mortem debugging
Running 'cont' or 'step' will restart the program
> c:\python\lib\distutils\command\upload.py(176)upload_file()
-> raise AssertionError("unsupported schema "+schema)
(Pdb) self.repository
'pypi'
(Pdb) schema
''
(Pdb) q