Index: modpython.txt
===================================================================
--- modpython.txt	(revision 5769)
+++ modpython.txt	(working copy)
@@ -63,6 +63,13 @@
         **PythonPath "['/path/to/project'] + sys.path"**
     </Location>
 
+Note that ``PYTHONPATH`` should be the parent directory of any module(s) you want to 
+use, so if your application ``mysite`` is in the ``/var/www/mysite`` directory, then you
+should use:
+
+    PythonPath "['/var/www'] + sys.path"
+
+
 .. caution::
 
     If you're using Windows, remember that the path will contain backslashes.