Index: django/core/handlers/modpython.py
===================================================================
--- django/core/handlers/modpython.py	(revision 7519)
+++ django/core/handlers/modpython.py	(working copy)
@@ -143,6 +143,8 @@
     def __call__(self, req):
         # mod_python fakes the environ, and thus doesn't process SetEnv.  This fixes that
         os.environ.update(req.subprocess_env)
+        import sys
+        sys.path.append(req.hlist.directory)
 
         # now that the environ works we can see the correct settings, so imports
         # that use settings now can work