Comment #3 on issue 16291 by t.broyer: Unable to sign-in on AppEngine  
(*.appspot.com) apps
http://code.google.com/p/chromium/issues/detail?id=16291

Yes, and changing it to allowing all cookies fixes the issue in Chrome 3.

Note though that even with "Restrict how third-party cookies can be used"  
selected, it
still works in Chrome 2.x

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