Since I started using cabal-0.16 and GHC-7.6.1 (Mac OS 10.8) I've started getting a lot of errors like this:
/Users/rrnewton/.cabal/setup-exe-cache/setup-Cabal-1.14.0-ghc-7.6.1:
/Users/rrnewton/.cabal/setup-exe-cache/setup-Cabal-1.14.0-ghc-7.6.1: cannot execute binary file
/Users/rrnewton/.cabal/setup-exe-cache/setup-Cabal-1.14.0-ghc-7.4.2:
/Users/rrnewton/.cabal/setup-exe-cache/setup-Cabal-1.14.0-ghc-7.4.2: cannot execute binary file
I tried blowing away the cache but that doesn't solve it, but if I remove the "-j" to turn off parallel builds, I don't run into the problem and my build succeeds.