For our e-commerce service running on AppEngine we would like to offer the option for customers to run the stores on their custom domains (eg: www.mystore.com instead of www
We did something similar to Daniel Vassallo second proposal. We created a python app on the Heroku cloud (there is no limit for connecting custom domains). This app is using python requests 1.2.0 lib to get the correct page from your app engine application according to the request domain. all you need to tell your clients is to put your Heroku app url as their CNAME For naked domains you can always use wwwizer