I fixed the egg file problem and removed the recaptcha in public registration part 1 and 2 and in student registration. I tested registrations as both public accounts and student accounts.
In pyramid.production.server.txt, '14) Creating an egg' is not well explained.
It has to take two steps:
1) ../bin/python setup.py install 
2) ../bin/python setup.py develop 
1) In env/community_csdt, after ../bin/python setup.py install, community_csdt-0.0-py2.7.egg, along with required packages in setup.py, are created in the env/lib/python2.7/site-packages.  Note: it has to be the python in the ../bin. Using python setup.py install will install those files into usr/lib/python2.7/dist-packages.
It has to be env/lib/python2.7/site-packages, because it is specified in /etc/apache2/conf.d/wsgi.conf. 
For more information: 
Running a Pyramid Application under mod_wsgi
http://docs.pylonsproject.org/projects/pyramid/en/latest/tutorials/modwsgi/index.html?awesome
2) The project has to be developed in order for the server to work. ../bin/python setup.py develop will install/update the egg-link file in env/lib/python2.7/site-packages.