OAuth 2.0 uses new endpoints. OAuth 2.0 moderator sample uses gflags. OAuth 2.0 tools.run adds a local web server to handle redirect_uri if possible.
diff --git a/apiclient/ext/authtools.py b/apiclient/ext/authtools.py
index c383811..41c0767 100644
--- a/apiclient/ext/authtools.py
+++ b/apiclient/ext/authtools.py
@@ -25,7 +25,6 @@
 
 import BaseHTTPServer
 import logging
-import pickle
 import socket
 import sys
 
diff --git a/apiclient/oauth.py b/apiclient/oauth.py
index b9fe7d3..618b29f 100644
--- a/apiclient/oauth.py
+++ b/apiclient/oauth.py
@@ -290,9 +290,12 @@
     """Exhanges an authorized request token
     for OAuthCredentials.
 
-    verifier - either the verifier token, or a dictionary
+    Args:
+      verifier: string, dict - either the verifier token, or a dictionary
         of the query parameters to the callback, which contains
         the oauth_verifier.
+    Returns:
+       The Credentials object.
     """
 
     if not (isinstance(verifier, str) or isinstance(verifier, unicode)):
diff --git a/oauth2client/tools.py b/oauth2client/tools.py
index e244525..05e8b05 100644
--- a/oauth2client/tools.py
+++ b/oauth2client/tools.py
@@ -23,6 +23,74 @@
 __all__ = ['run']
 
 
+import BaseHTTPServer
+import gflags
+import logging
+import socket
+import sys
+
+from optparse import OptionParser
+from apiclient.oauth import RequestError
+
+try:
+    from urlparse import parse_qsl
+except ImportError:
+    from cgi import parse_qsl
+
+
+FLAGS = gflags.FLAGS
+
+gflags.DEFINE_boolean('auth_local_webserver', True,
+                     ('Run a local web server to handle redirects during '
+                       'OAuth authorization.'))
+
+gflags.DEFINE_string('auth_host_name', 'localhost',
+                     ('Host name to use when running a local web server to '
+                       'handle redirects during OAuth authorization.'))
+
+gflags.DEFINE_multi_int('auth_host_port', [8080, 8090],
+                     ('Port to use when running a local web server to '
+                       'handle redirects during OAuth authorization.'))
+
+
+class ClientRedirectServer(BaseHTTPServer.HTTPServer):
+  """A server to handle OAuth 2.0 redirects back to localhost.
+
+  Waits for a single request and parses the query parameters
+  into query_params and then stops serving.
+  """
+  query_params = {}
+
+
+class ClientRedirectHandler(BaseHTTPServer.BaseHTTPRequestHandler):
+  """A handler for OAuth 2.0 redirects back to localhost.
+
+  Waits for a single request and parses the query parameters
+  into the servers query_params and then stops serving.
+  """
+
+  def do_GET(s):
+    """Handle a GET request
+
+    Parses the query parameters and prints a message
+    if the flow has completed. Note that we can't detect
+    if an error occurred.
+    """
+    s.send_response(200)
+    s.send_header("Content-type", "text/html")
+    s.end_headers()
+    query = s.path.split('?', 1)[-1]
+    query = dict(parse_qsl(query))
+    s.server.query_params = query
+    s.wfile.write("<html><head><title>Authentication Status</title></head>")
+    s.wfile.write("<body><p>The authentication flow has completed.</p>")
+    s.wfile.write("</body></html>")
+
+  def log_message(self, format, *args):
+    """Do not log messages to stdout while running as command line program."""
+    pass
+
+
 def run(flow, storage):
   """Core code for a command-line application.
 
@@ -32,20 +100,43 @@
 
   Returns:
     Credentials, the obtained credential.
-
-  Exceptions:
-    RequestError: if step2 of the flow fails.
   """
-  authorize_url = flow.step1_get_authorize_url('http://localhost:8080/')
+  if FLAGS.auth_local_webserver:
+    success = False
+    port_number = 0
+    for port in FLAGS.auth_host_port:
+      port_number = port
+      try:
+        httpd = BaseHTTPServer.HTTPServer((FLAGS.auth_host_name, port),
+            ClientRedirectHandler)
+      except socket.error, e:
+        pass
+      else:
+        success = True
+        break
+    FLAGS.auth_local_webserver = success
+
+  if FLAGS.auth_local_webserver:
+    oauth_callback = 'http://%s:%s/' % (FLAGS.auth_host_name, port_number)
+  else:
+    oauth_callback = 'oob'
+  authorize_url = flow.step1_get_authorize_url(oauth_callback)
 
   print 'Go to the following link in your browser:'
   print authorize_url
   print
 
-  accepted = 'n'
-  while accepted.lower() == 'n':
-    accepted = raw_input('Have you authorized me? (y/n) ')
-  code = raw_input('What is the verification code? ').strip()
+  if FLAGS.auth_local_webserver:
+    httpd.handle_request()
+    if 'error' in httpd.query_params:
+      sys.exit('Authentication request was rejected.')
+    if 'code' in httpd.query_params:
+      code = httpd.query_params['code']
+  else:
+    accepted = 'n'
+    while accepted.lower() == 'n':
+      accepted = raw_input('Have you authorized me? (y/n) ')
+    code = raw_input('What is the verification code? ').strip()
 
   try:
     credentials = flow.step2_exchange(code)
@@ -54,7 +145,6 @@
 
   storage.put(credentials)
   credentials.set_store(storage.put)
-
-  print 'You have successfully authenticated.'
+  print "You have successfully authenticated."
 
   return credentials
diff --git a/samples/oauth2/moderator/moderator.py b/samples/oauth2/moderator/moderator.py
index d547d70..1578abd 100644
--- a/samples/oauth2/moderator/moderator.py
+++ b/samples/oauth2/moderator/moderator.py
@@ -3,26 +3,31 @@
 #
 # Copyright 2010 Google Inc. All Rights Reserved.
 
-"""Simple command-line example for Buzz.
+"""Simple command-line example for Moderator.
 
-Command-line application that retrieves the users
-latest content and then adds a new entry.
+Command-line application that exercises the Google Moderator API.
 """
 
 __author__ = 'jcgregorio@google.com (Joe Gregorio)'
 
+import gflags
 import httplib2
+import sys
 
 from apiclient.discovery import build
 from oauth2client.file import Storage
 from oauth2client.client import OAuth2WebServerFlow
 from oauth2client.tools import run
 
-# Uncomment to get low level HTTP logging
-#httplib2.debuglevel = 4
+FLAGS = gflags.FLAGS
 
+def main(argv):
+  try:
+    argv = FLAGS(argv)
+  except gflags.FlagsError, e:
+    print '%s\\nUsage: %s ARGS\\n%s' % (e, argv[0], FLAGS)
+    sys.exit(1)
 
-def main():
   storage = Storage('moderator.dat')
   credentials = storage.get()
 
@@ -87,4 +92,4 @@
 
 
 if __name__ == '__main__':
-  main()
+  main(sys.argv)