Cannot import mypackage with code in the __init__.py file

[fred]

I'm upgrading to django 1.5.1 on CentOs 6.4 with python 2.6.6  although I'm 
developing on a W7 with the django debug server.

I am getting executing my view.py and most of the modules it uses.  But in 
one scenario, the import fails, see directory outline below

NewMdsServer
   |___NewMdsServer
              |___settings.py
              |___wsgi.py 
              |___ ...
   |___app
            |___views.py
            |___mymodule.py
            |___mypackage
                       |___  __init__.py
                       |___  x.py
                       |___  y.py

I have code in the __init__.py which then imports x, y, etc

I cannot seem to import mypackage from views or other modules at the same 
level.  I've tried multiple variants as shown below and sys.path includes 
the directory above app.
from app import mypackage  -- "No module named mypackage"
import mypackage  -- "No module named ..
import app.mypackage -- ditto

The really strange thing is I could swear this was working last week  
before I got pulled off onto another project for a few days.  I'm the only 
one using this server and I have root access.  I've tried google, but 
cannot find a phrase that gives me anything useful.  I would really 
appreciate some advice on what I'm doing wrong.

Thanks,

Fred.

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