On Win7 64 bit, with Anaconda 1.7, when I go to the command prompt and try:
conda update conda
I get the following error.
The only way I found to fix this was to search for yaml and manually add it to the PYTHONPATH environment variable, e.g.
PYTHONPATH=C:\Anaconda\pkgs\pyyaml-3.10-py27_1\Lib\site-packages