Oh, I see. I think that's almost right but I believe you are going to want to manage Web2py and your app separately.
So you could clone web2py from source (either through MacHG or drag web2py directory onto MacHG). Then create your new app (or drag it from wherever it is into the applications folder. Then drag your application folder onto MacHG. Note: I have not tried this since I run the web2py.app on my Mac. The nice thing is that it's hard to do too much damage with version control since you can usually start over. Just make sure you don't lose your app!
