ImportError: Could not import settings 'settings' (Is it on sys.path? Does it have syntax errors?): No module named settings.

<VirtualHost *:80>
    ServerName localhost
    DocumentRoot "C:/xampp/htdocs/localhost"
    ErrorLog "logs/localhost-error.log"
    CustomLog "logs/localhost-access.log" combined
 
    # Serve django pages
    <LocationMatch ^/(.*)$>
        SetHandler python-program
    PythonHandler django.core.handlers.modpython
    SetEnv DJANGO_SETTINGS_MODULE settings
    PythonDebug On
    </LocationMatch>
 
</VirtualHost>

ImportError: Could not import settings 'testproject.settings' (Is it on sys.path? Does it have syntax errors?): No module named testproject.settings
 

MOD_PYTHON ERROR
 
ProcessId:      576
Interpreter:    'localhost'
 
ServerName:     'localhost'
DocumentRoot:   'C:/xampp/htdocs/localhost'
 
URI:            '/testproject/'
Location:       '/testproject'
Directory:      None
Filename:       'C:/xampp/htdocs/localhost/testproject/'
PathInfo:       ''
 
Phase:          'PythonHandler'
Handler:        'django.core.handlers.modpython'
 
Traceback (most recent call last):
 
  File "C:\Python25\Lib\site-packages\mod_python\importer.py", line 1537, in HandlerDispatch
    default=default_handler, arg=req, silent=hlist.silent)
 
  File "C:\Python25\Lib\site-packages\mod_python\importer.py", line 1186, in _process_target
    newpath = eval(pathstring)
 
ValueError: invalid \x escape
 

PythonPath "['C:\xampp\htdocs\localhost\testproject'] + sys.path"

PythonPath "['C:\\xampp\\htdocs\\localhost\\testproject'] + sys.path"