I spend a lot of time to figure out what is wrong. Part of the issue is Eclipse+Pydev cannot find the path to files.
This happens because I have two separate web2y source projects under Eclipse - one with trunk, one with release. What I discovered: made a module, imported it from a controller, the debugger comes to the module, with F5 I am stepping through the code and at some point "return" goes back to the "default" controller, at this point a pop up window opened and asked me for alternatives of "default" and it showed to me all "defaults" in all "projects" to choose from. So it clicked to me I have to add a path to current app to be found. I suppose this was done automatically. Making this works seamlessly with many projects is not easy. What web2py needs is an Eclipse plugin - a project wizard which to create an Eclipse web2py project, adding the wep2py and the project paths in the beginning, like what Google has for AppEngine.
