I have tried the new import behavior (placing modules inside the application's "modules" folder) and it works correctly under OS/X but not at all under Windows (XP).
Below you can find the Windows traceback. web2py™ Version 1.96.2 (2011-06-03 16:11:39) Python Python 2.5.4: C:\web2py\web2py.exe Traceback (most recent call last): File "gluon/restricted.py", line 184, in restricted File "C:/web2py/applications/castalia/controllers/default.py", line 2, in <module> File "gluon/custom_import.py", line 280, in __call__ File "gluon/custom_import.py", line 125, in __call__ ImportError: No module named selfgroup.castalia Any suggestion? > - from mymodule import *, looks for mymodule in applications/thisapp/ > modules first and then in sys.path. No more need for local_import. > Thanks Pierre.