There is only a brief explanation on official book I'd like to share how I set it up at the company I work.
http://ochiba77.blogspot.com/2011/10/how-to-set-up-web2py-ldap-with-windows.html This was a key feature I was looking over years to use web framework in my intranet web site and web2py made it so easy !!! Now I can confidently recommend web2py to our company and group companies in the world.