Problem running "mobilewebapp" sample in 2.4

I am following the instructions as documented at:

http://google-web-toolkit.googlecode.com/svn/trunk/samples/mobilewebapp/README-MAVEN.txt   (OptionA)

I am able to build the application but as I try to run it in hosted mode (using AppEngine)  I get the following error on the browser :

Http Error 500

No realm

RequestURI=/MobileWebApp.html

I suspect this has to do with  access privileges and so forth. Did anyone else run into this issue ?

Any pointers/thoughts on what might be going on would be much appreciated. 

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