It's difficult to make scripts that work for every situation. One thing you can try is instead of running the script, just careful run each command manually, picking and choosing which ones you think you need.
I've also put up some other scripts here: https://bitbucket.org/pbreit/web2py-automation/overview However, per your #3, this is probably the easiest way to get up and running and works fine for development. Either download the tar/zip or (better) hg clone the source code. Then, I think these are the instructions you might want to follow: http://web2py.com/book/default/chapter/04#Command-Line-Options
