It is only the welcome application that stalls loading the default index 
page, opening a different application works fine.

applications/welcome/controller/default function index() has this new debug 
code between def and return

    m = 'You are successfully running web2py.'
    import gluon.debug; 
    gluon.debug.set_trace()
    response.flash = T(m)
    gluon.debug.stop_trace()

comment out the debug code and the welcome initial page loads

    m = 'You are successfully running web2py.'
    #import gluon.debug; 
    #gluon.debug.set_trace()
    response.flash = T(m)
    #gluon.debug.stop_trace()

Ron

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