Google only supports 2.5 for anything python related. Take a look at the python protobuf client:

http://code.google.com/p/protobuf/issues/detail?id=66&q=...

Don't expect google to upgrade anytime soon.

Python 2.7 is now on the roadmap.

http://code.google.com/appengine/docs/roadmap.html

Oh now that'll be nice. Wonder if they'll let let me future import ;) I seem to recall some restrictions in how they implemented the VM for AppEngine.

GAE is not distributed through PyPI. I think the list is generated from that.