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Necessary steps:

Install Python 2.5 by following this wiki page
Install setuptools
Run easy_install Flup
Download and extract web2py
Run python web2py.py to create the necessary framework files
Create a file dispatch.fcgi at the root of web2py directory with the following content:

Code:

#!/home/youruserhere/run/bin/python
import sys
from flup.server.fcgi_fork import WSGIServer
import gluon.main
application=gluon.main.wsgibase
## or
# application=gluon.main.wsgibase_with_logging
WSGIServer(application).run()

make this file executable by typing chmod +x dispatch.fcgi
create or add the following lines to .htaccess:

Code:

RewriteEngine On
RewriteBase /
RewriteRule ^dispatch\.fcgi/ - [L]
RewriteRule ^(.*)$ dispatch.fcgi/$1 [L]

Now try and access the sub/domain on your browser and it should work!

The original of this document is here