The following forum message was posted by  at 
http://sourceforge.net/projects/pydev/forums/forum/293649/topic/4370345:

Since Google app engine 1.4.2, the django directory was separated in django_1_2
and django_0_06. When creating a new project pydev shows the following error
message: "Invalid Google App Engine directory. Did not find:
..../google_appengine/lib/django"
So, I had to create symbolic link django directory.

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