hi everyone: a little update. Problem (2) is my mistake, not web2py. It's a logical mistake by which I redirect to "index" in an infinite loop (so to speak). This error occurred when the put it a new database (mysql or postgres), which led me think initially it was a database configuration mistake.
Problem (1) is fixed as well. I had to modify the installation script's default values to put in the ServerName in Apache for this to work. Now it seems to work BUT********** it asks for a password to log in the admin app. Which password should I use? Where am I supposed to give web2py this password?