Google Appengine Hello World Gets Http 500 Error

I created a new project in Google Appengine but when I try to access it through localhost I get a HTTP 500 Error. My browser says 'localhost is currently unable to handle this req

Solution 1:

Update: the issue was fixed in SDK version 1.9.40.

There is a GAE issue causing exactly this behaviour introduced in SDK version 1.9.37, see "ImportError: No module named webapp2" after Linux SDK upgrade (1.9.35 -> 1.9.38).

If your SDK version is 1.9.37 or 1.9.38 downgrade to 1.9.36, which you can find here. At least until the fix gets released.