Local Appengine stopped working

I tried to run one of my AppEnigne projects (python) today but it will no longer launch, this is the stack trace I'm getting.

 *** Running dev_appserver with the following flags:
    --admin_console_server= --port=8080 --clear_datastore
Python command: /usr/bin/python2.5
Traceback (most recent call last):
  File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/dev_appserver.py", line 77, in <module>
    run_file(__file__, globals())
  File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/dev_appserver.py", line 73, in run_file
    execfile(script_path, globals_)
  File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/google/appengine/tools/dev_appserver_main.py", line 138, in <module>
    import logging
ImportError: No module named logging

I thought it could be a python 2.6 error but I adjusted my path to /usr/bin/python2.5 and its still not working. I'm running OSX 10.6.8 and have the latest AppEngineLauncher 1.5.4

The only thing I changed recently that might have affected this is when I updated my XCode to the latest version, v4.2 build 4C199

Has anyone else faced this issue recently?

EDIT I can't import logging from the terminal either, same message. Here's Python's path.

    Chriss-MacBook-Pro:bin chris$ /usr/bin/python2.5
    Python 2.5.4 (r254:67916, Aug  2 2010, 20:09:39) 
    [GCC 4.2.1 (Apple Inc. build 5646)] on darwin
    Type "help", "copyright", "credits" or "license" for more information.
    >>> import sys
    >>> sys.path
    ['', '/System/Library/Frameworks/Python.framework/Versions/2.5/lib/python25.zip', 
'/System/Library/Frameworks/Python.framework/Versions/2.5/lib/python2.5',
 '/System/Library/Frameworks/Python.framework/Versions/2.5/lib/python2.5/plat-darwin',
 '/System/Library/Frameworks/Python.framework/Versions/2.5/lib/python2.5/plat-mac',
 '/System/Library/Frameworks/Python.framework/Versions/2.5/lib/python2.5/plat-mac/lib-scriptpackages',
 '/System/Library/Frameworks/Python.framework/Versions/2.5/Extras/lib/python',
 '/System/Library/Frameworks/Python.framework/Versions/2.5/lib/python2.5/lib-tk',
 '/System/Library/Frameworks/Python.framew开发者_开发问答ork/Versions/2.5/lib/python2.5/lib-dynload',
 '/Library/Python/2.5/site-packages',
 '/System/Library/Frameworks/Python.framework/Versions/2.5/Extras/lib/python/PyObjC',
 '/System/Library/Frameworks/Python.framework/Versions/2.5/Extras/lib/python/wx-2.8-mac-unicode']
    >>> 

---

Thanks to Nick and Wobble I've figured it out. I recently updated my XCode install to the 4.2 GM release and removed the beta versions. Along the way OSX forgot where gcc was installed and prevented it from compiling the python modules like logging. This resulted in missing .pyo files inside /System/Library/Frameworks/Python.framework/Versions/2.5/lib/python25/logging which prevents import logging from working.

Logging wasn't the only module that wasn't compiled, just the first one AppEngine tried to import.

Solution: uninstall and do a clean install of XCode. Make sure gcc can be found on your PATH and everything should be fine.