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07:25 ~/google_appengine $ ./appcfg.py | more
/usr/local/lib/python2.7/site-packages/pytz/__init__.py:35: UserWarning: Module yaml was already imported from /home/ta2013/google_appengine/lib/yaml/lib/yaml/__init__
.pyc, but /usr/local/lib/python2.7/site-packages is being added to sys.path
from pkg_resources import resource_stream

when i try http://googleappengine.googlecode.com/files/google_appengine_1.7.7.zip

That doesn't look like it will necessarily break anything, it's just saying that you're using google's version of yaml, but there's another version available in our standard site-packages... Since you're using the one google wants, it should be OK.

Are you seeing any other problems?