Webfaction recommends setting up memcached this way:
http://docs.webfaction.com/software/memcached.html#setting-up-memcached
ie, with this command: memcached -d -m memory -s ~/memcached.sock

The problem here is that this page( 
http://web2py.com/book/default/chapter/11#Memcache
) gives an incompatible way to access the socket. I have to use the
filestream socket(ie. ~/memcached.sock) given by webfaction. How do I
get web2py to use the file/socket?

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