Check out http://code.google.com/p/googleappengine/issues/detail?id=792.
The issue is not resolved by any means but enough workarounds
available to not let this become a show-stopper.

On Jan 4, 3:37 pm, Timmy G <[email protected]> wrote:
> Over a year ago when Google announced SSL support they said it
> wouldn't be supported with custom domains. (http://
> googleappengine.blogspot.com/2008/10/announcing-https-support-for-
> appspotcom.html). This appears to be the case still today. However,
> they offered some hoped in their statement:
>
> >> You may be wondering why we're only supporting appspot.com right now, and 
> >> not arbitrary Google Apps domains. This has to do with fundamental 
> >> limitations in the SSL protocol. We're currently investigating workarounds 
> >> for this using e.g. SNI, which provides a viable solution for newer 
> >> browsers--we'll keep you posted! <<
>
> So, 1.25 years later, any progress or encouraging expectations?
>
> I ask because I'm working on a project due in 6-12 months that has a
> business requirement of supporting a custom domain name over https. If
> there's a reasonable chance it will supported it by then, I might
> stick with AppEngine and save the decision point for later. If not, I
> might as well not waste my time and will bail on AppEngine right now.
> Thanks!
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