[web2py] fastcgi install not working

[Cory Coager]

I just setup a new install of web2py on a shared host.  Using the
fastcgi instructions results in the webpage displaying the contents of
dispatch.fcgi instead of executing it.  What am I doing wrong?

Here is dispatch.fcgi:

#!/usr/bin/env /home/<user>/w2env/bin/python
import sys
from flup.server.fcgi_fork import WSGIServer
import gluon.main
application=gluon.main.wsgibase
## or
# application=gluon.main.wsgibase_with_logging
WSGIServer(application).run()


Here is .htaccess:
Options +FollowSymLinks +ExecCGI
AddHandler fcgid-script .cgi
RewriteEngine On
RewriteBase /
RewriteRule ^dispatch\.fcgi/ - [L]
RewriteRule ^(.*)$ dispatch.fcgi/$1 [L]