Steps to configure Google App Engine:

mkdir "app_name"
cd "app_name"
gedit "app_name".py
gedit app.yaml

app.yaml contents:

application: "name_of_app_gsa"
version: 1
runtime: python
api_version: 1
handlers:
- url: /.*
  script: helloworld.py

Configure:

python dev_appserver.py "app_name"

Uploading:

sudo appcfg.py --email=hemanth.hm@gmail.com update "app_name"/