i have exactly the same issue and I am using the default google web 
application for eclipse.

I use this command for my upload.
./appcfg.sh --oauth2 --no_cookies --use_java7  --application=jerrtku1 
update /home/jerrtku/workspace/test2/war


On Wednesday, December 26, 2012 9:11:01 PM UTC, Akshay Pakanati wrote:
>
>
> my error while uploading  
>
> *appcfg --use_java7 update f:/akshaypakanati/war*
>
> *Unable to update:*
> *com.google.appengine.tools.admin.HttpIoException: *
> *
> *
> *Error posting to URL: *
> *
> *
> *https://appengine.google.com/api/appversion/create?*
> *
> *
> *app_id=cvsrportal&version=2&*
> *400 Bad Request*
> *
> *
> *Invalid runtime or the current user is not authorized to use it.*
>

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