I always recommend installing Web2py from version control: hg clone https://web2py.googlecode.com/hg/ web2py
That's pretty much all you need to do. That allows for much better control over which version of Web2py you are running. Web2py itself requires no further setup. I'm not exactly sure about setting it up for Apache (I use Nginx) but there is this script that you can use or at least review: http://code.google.com/p/web2py/source/browse/scripts/setup-web2py-ubuntu.sh
