Pai, The solution to your problem is described in this thread:
http://groups.google.com/group/web2py/browse_thread/thread/504dd2deff41f8f4/156e920088c11b85#156e920088c11b85 Basically you have to log on to webfaction via terminal/ssh and manually create a directory in your remote web2py/applications directory. You can then upload and install a packed web2py app via the web interface. Kind regards, Annet.
