For me, the problem seems to be this changeset: http://code.google.com/p/web2py/source/detail?r=143bbe9e11c1c66f6d932514c9918ad7410027b5
Light, if you are cloning Web2py with Mercurial (which is a good idea), you can specify exactly which version you want to be running like this: $ hg update [changeset] So to set Web2py back to a version that works: $ hg update d4c2d8d15bb1