In the installation script used: http://code.google.com/p/web2py/source/browse/scripts/setup-web2py-ubuntu.sh
there is this at line 62: chown -R www-data:www-data web2py I tried to do "chown -R www-data web2py" in home dir and restart apache as suggested but the situation is not changed, Im still unable to upload via the form "Upload & install packed application". I've not tried yet to manually upload the application files in place, maybe this will work. But a solution to this would be much appreciated.