django windows can't import settings

I'm getting this error when trying to do python manage.py runseerver 0.0.0.0:8000 :

E:\server\website>python manage.py runserver 0.0.0.0:8000
Traceback (most recent call last):
  File "manage.py", line 11, in <module>
    execute_manager(settings)
  File "C:\Python27\lib\site-packages\django\core\management\__init__.py", line 459, in execute_manager
    utility.execute()
  File "C:\Python27\lib\site-packages\django\core\management\__init__.py", line 382, in execute
    self.fetch_command(subcommand).run_from_argv(self.argv)
  File "C:\Python27\lib\site-packages\django\core\management\__init__.py", line 261, in fetch_command
    klass = load_command_class(app_name, subcommand)
  File "C:\Python27\lib\site-packages\django\core\management\__init__.py", line 69, in load_command_class
    module = import_module('%s.management.commands.%s' % (app_name, name))
  File "C:\Python27\lib\site-packages\django\utils\importlib.py", line 35, in import_module
    __import__(name)
  File "C:\Python27\lib\site-packages\django\core\management\commands\runserver.py", line 8, in <module>
    from django.core.servers.basehttp import AdminMediaHandler, run, WSGIServerException, get_internal_wsgi_application
  File "C:\Python27\lib\site-packages\django\core\servers\basehttp.py", line 26, in <module>
    from django.views import static
  File "C:\Python27\lib\site-packages\django\views\static.py", line 95, in <module>
    template_translatable = ugettext_noop(u"Index of %(directory)s")
  File "C:\Python27\lib\site-packages\django\utils\translation\__init__.py", line 75, in gettext_noop
    return _trans.gettext_noop(message)
  File "C:\Python27\lib\site-packages\django\utils\translation\__init__.py", line 48, in __getattr__
    if settings.USE_I18N:
  File "C:\Python27\lib\site-packages\django\utils\functional.py", line 184, in inner
    self._setup()
  File "C:\Python27\lib\site-packages\django\conf\__init__.py", line 42, in _setup
    self._wrapped = Settings(settings_module)
  File "C:\Python27\lib\site-packages\django\conf\__init__.py", line 95, in __init__
    raise ImportError("Could not import settings '%s' (Is it on sys.path?): %s" % (self.SETTINGS_MODULE, e))
ImportError: Could not import settings 'app.settings' (Is it on sys.path?): No module named settings

E:\server\website>
E:\server\website>ls
app  __init__.py  __init__.pyc  ctrl  manage.py  settings.py  settings.pyc  urls.py  app2

E:\server\website>

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