http://code.google.com/p/modwsgi/wiki/CheckingYourInstallation#Embedded_Or_Daemon_Mode
Review setup instructions for daemon mode in:
http://code.google.com/p/modwsgi/wiki/QuickConfigurationGuide#Delegation_To_Daemon_Process
Graham
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The only way your WSGI application would have been run in the daemon
process would be to have set WSGIProcessGroup or add appropriate
process-group option to WSGIScriptAlias. One when in daemon mode would
python-path option applied.
Anyway, so long as that validation check I pointed you to in
documentation now works, you should be fine. You might look at some of
the other validation checks you can run which are described in that
documentation to understand how your system is setup.
Graham