Error - Can not start appcfg.py

Fairly new PyCharm user – loving it so far!

However, when trying to deploy to Google App Engine - Tools / Google App Engine / Upload App Engine app... - PyCharm 2.7 immediate displays this error:

Error
Can not start appcfg.py:

Using Mountain Lion. I believe this started since updating to PyCharm 2.7 and I haven't tried on my Windows machine yet. I can deploy to App Engine from command-line using appcfg.py with no issues. I tried recreating sym links in Google App Engine Launcher.  I know that App Engine SDK is configured correctly because I can start the web server from PyCharm, only deploy fails.

I can't find any error logs, dtruss didn't seem to produce any useful hints, I don't know where else to look.  Has anyone else come across this problem?

Thanks
Steve

Screen Shot 2013-02-11 at 10.08.44 PM.png

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