I noticed the source code version is quite a bit different:
http://code.google.com/p/web2py/source/browse/web2py.py
#!/usr/bin/env python
# -*- coding: utf-8 -*-
import os
import sys
if '__file__' in globals():
path = os.path.dirname(os.path.abspath(__file__))
os.chdir(path)
else:
path = os.getcwd() # Seems necessary for py2exe
sys.path = [path]+[p for p in sys.path if not p==path]
# import gluon.import_all ##### This should be uncommented for py2exe.py
import gluon.widget
# Start Web2py and Web2py cron service!
gluon.widget.start(cron=True)