I have corporate proxy that supports https but not HTTP CONNECT (even after authentication). It just gives 403 Forbidden in response anything but HTTP or HTTPS URLS. It uses HTTP authenication, not NTLM. It is well documented the urllib2 does not work with https thru a proxy. App Engine trys to connect to a https URL using urllib2 to update the app.
On *nix, urllib2 expects proxies to set using env variables.
export http_proxy="http://mycorporateproxy:8080"
export https_proxy="https://mycorporateproxy:8080"
This is sited as a work around: http://code.activestate.com/recipes/456195/. Also see http://code.google.com/p/googleappengine/issues/detail?id=126. None of these fixes have worked for me. They seem to rely on the proxy server supporting HTTP CONNECT. Does anyone have any other work arounds? I sure I am not the only one behind a restrictive corporate proxy.