i have full web2py in source control for my clients. this is so that at any time they can go back to a version of both my application and web2py that was running on their server. it does make web2py upgrades a little trickier, but i think it is worth it from the code history/stability standpoint.
yes, as a GAE user you *need* to have app.yaml, index.yaml, and queue.yaml in your source control (right now they get overwritten on upgrade so you want them backed up). most people also need to have routes.py in their source control. when i want to test out new things from trunk, i have an hg repository of trunk and i just symlink the application that i want to test into that directory. usually works without too much fuss. christian

