Google App Engine Python ImportError Module Not Found

Question

I'm using Pydev 1.5.9 and the latest version of google app engine, developing in eclipse 3.6

I've set up my environment, and I have my base code executing fine.

Now I'm trying to import the simplejson library using import simplejson

I've tried

1. adding the simplejson folder to a "pydev source folder" within eclipse
2. tried adding simplejson folder as an external library
3. tried adding simplejson in PYTHONPATH

I am still encountering an error when I attempt to run using SDK dev server. ' import simplejson
ImportError: No module named simplejson'

What is the best way to import external libraries into a Python App Engine project using Eclipse and Pydev?