Index: virtualenv.py
===================================================================
--- virtualenv.py	(revision 3770)
+++ virtualenv.py	(working copy)
@@ -597,8 +597,8 @@
     if sys.executable != py_executable:
         ## FIXME: could I just hard link?
         executable = sys.executable
-        if (sys.platform == 'cygwin' and not os.path.exists(executable)
-            and os.path.exists(executable + '.exe')):
+        if (sys.platform == 'cygwin'
+            and not '.exe' in os.path.splitext(executable)[1]):
             # Cygwin misreports sys.executable sometimes
             executable += '.exe'
             py_executable += '.exe'