Hi!
I've just played a bit with the openid-consumer you mention and it actually works. Have you tried to run the sample code standalone, as a separate project?
I've used it in a test application on App Engine and it seems to work alright. I placed the consumer.py, fetcher.py, store.py and then the openid dir in the root dir, then I moved parts of the config in app.yaml from the openid sample app to my app.yaml.
You can check the implementation at http://x-libris.appspot.com. In the upper right corner press Logga in (which is swedish for login). Try using any of the available OpenId providers, so far OpenId, Google, MySpace and Yahoo! are available (I've only tested the first two providers).
It's an Ajax based solution so I did some tweaking of the render method in consumer.py in order to change the templating and the example at openid-demo.appspot.com was handy.
// John