Python 2.7.2 and Google App Engine SDK 1.6.1 on Win 7 Home Premium not working
I was facing the same issue, browse button was disabled. I ran dev_appserver.py helloworld command at command prompt and then opened localhost:8080 in my browser the hello world program ran successfully.
I have installed Python 2.7.2 (Win7 32-bit) and Google App Engine SDK 1.6.1 for Win7 on a 64-bit system running Win7 Home Premium.  Default folder locations for both Python and GAE.  When I try to run the helloworld project as described in the Google Python Getting Started doc, the Launcher's "browse" button never becomes active.  The GAE SDK is supposed to do fine with Python 2.7.
Is there a complete listing anywhere of environment variables needed for this setup to work?  So far, all posts I have seen are from users who have gotten well past this absolutely basic step.