Your code base should be adjusted. Both Anthony & Jonathan helped me with similar problem for me.
Here is my routes.py: https://bitbucket.org/id804097/minnaedu/src/570149716878/webapp/routes.py here is my controller/index: https://bitbucket.org/id804097/minnaedu/src/570149716878/webapp/applications/init/controllers/default.py here is the final application: minnaedu.appspot.com Hope these help Joseph