This is actually a GAE bug. According to GAE documentation the
memcache service should by default log and ignore infrastructure
faults (which would be a very sensible thing to do) but it doesn't.
I opened a ticket 6 months ago (yes, half a year!)
http://code.google.com/p/googleappengine/issues/detail?id=6236
There is no excuse for leaving this broken for so long. It's an
extremely harmful bug and yet easy to fix. I've been raising this
issue every chance I get but the response from fellow GAE developers
on this group has been muted. We should be outraged, people :-)
Seriously, this bug can take down any of your sites if it happens to
link up with a dodgy memcache service. From experience this can last
up to half an hour.