Looks like we may have a compatibility issue with the South version that's installed. Here is some details on stackoverflow:
http://stackoverflow.com/questions/20474954/error-when-south-in-installed-apps
Essentially, south successfully imports with python 2.7 console but fails with python 3.3 console. When removing south from the INSTALLED_APPS settings the application runs without error, but with south in the INSTALLED_APPS there is an import error.
Any ideas of what I can do, or do we need to update the south version on the server to be compatible with django 1.6/python 3.3?