> 1. Are there any current efforts to get it working and approved with
> Google AppEngine?

What about Leon's Amazon's S3 module?

http://search.cpan.org/dist/Net-Amazon-S3/

Also, why not generate the Python you need to solve the problem that
AppEngine would enhance?  AppEngine doesn't allow writing to disk or
integrating with C modules (at least according to the FAQ) so it seems
it has a fairly narrow application range.  By generating the code, you
gain access to the cloud for the problems that the cloud solves best.

Rob