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To run the project locally with virtualenv:

$ pip install virtualenv

$ virtualenv venv/ --no-site-packages

$ venv/bin/pip install -r requirements.txt

$ venv/bin/python runserver.py

To run the project locally with App Engine:

Extract the various python libs in lib/ to the document root, e.g.

$ tar xzf lib/Flask-0.8.tar.gz

$ mv Flask-0.8/flask/ .

$ rm -rf Flask-0.8/

Then run it:

$ dev_appserver.py .