I apologize, the 1.94.1-4 has had problems with sessions because of recent major refactoring. The latest reported here:
http://groups.google.com/group/web2py/msg/59f3716c4dcbdf47 Jonathan figured out the problem and submitted a patch. It passes my tests. Please check it and hopefully the issue is resolved. If you still have problems with sessions, let us know asap. Massimo