Local SDK _does not_ emulate deployment environment quotas
What may be confusing people is that the local SDK does impose the language limits in Python. To see exactly what's different (what you can use, what you can almost use, and what you cannot use), check out the source for dev_appserver.py in the local SDK.
I hope this helps clear up some of the confusion.
It would be good, in the future, to have the ability to run the local server with and without quotas in place.
With quotas for simulating deployment environment behavior, and without quotas when running tasks that will only run locally and that would be otherwise be negatively affected by the quotas (e.g., restoring a backup).
The Local SDK _does not_ emulate deployment environment quotas article by Aral Balkan, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-Noncommercial 2.0 UK: England License.

Ozgur Cem S.
Hi Aral,
I guess this project is giving you grief, related to http://groups.google.com/group/google-appengine/browse_thread/thread/b9b86f30146a8011/c11ad4240732ce2f#c11ad4240732ce2f . At first I thought you may be dealing with images
Did you try/consider compressing your output ?
Cem
August 8th, 2008 at 6:17 pmOzgur Cem S.
I meant to leave the comment above to your “backup/restore” post
August 8th, 2008 at 6:18 pm