1 Have you used something like this?
user = auth.login_bare("[email protected]", "password")
You can examine the user value to check if the function logged the user in.
2
Massimo provided a solution for the auto user creation here:
https://groups.google.com/d/msg/web2py/QlsqK1xhoD4/uUbDnbDNw9YJ

