I am getting this error in this version too while trying to deploy it
on a GAE development environment

I am running the latest web2py version 1.98.2

*****
web2py™ Version 1.98.2 (2011-08-04 00:47:09)
Python  Python 2.5.6: /usr/local/bin/python
******
Traceback (most recent call last):
  File "/home/ramaseshan/web2py/gluon/restricted.py", line 192, in
restricted
    exec ccode in environment
  File "/home/ramaseshan/web2py/applications/admin/controllers/
default.py:design", line 1224, in <module>
  File "/home/ramaseshan/web2py/gluon/globals.py", line 145, in
<lambda>
    self._caller = lambda f: f()
  File "/home/ramaseshan/web2py/applications/admin/controllers/
default.py:design", line 742, in design
AttributeError: 'module' object has no attribute 'mkdir'

Best regards
ram

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