Ubuntu – Init.d script works when run manually, but not on reboot

I'm trying to setup a RhodeCode server on Ubuntu 12.04. I have everything installed into a virtualenv, and everything works properly when I run it from the console (paster serve production.ini).

I wrote an init.d script to start it on boot, but it does not seem to work. When I execute sudo /etc/init.d/rhodecode start manually, I see "Starting RhodeCode" echoed to the console and everything works. However, if I reboot, or if I use sudo service rhodecode start, I do see the message echoed to the console, but the Python processes are not running.

I've installed the script using update-rc.d rhodecode defaults.

From researching how to achieve this, the sources I've found have suggested I don't need to run source /usr/rhode/venv if I run the python directly from the virtualenv directory. Successfully running this from the console without activating any virtualenv first seems to support this theory. The virtualenv page seems to confirm this:

If you directly run a script or the python interpreter from the virtualenv's bin/ directory (e.g. path/to/env/bin/pip or /path/to/env/bin/python script.py) there's no need for activation.

For more details on how I've set the server up, this Gist shows my notes on what I've done so far: Installing RhodeCode 1.3.6 on Ubuntu Server 12.04

/etc/init.d/rhodecode

#!/bin/sh

### BEGIN INIT INFO
# Provides:       rhodecode
# Required-Start: $all
# Required-Stop:  $all
# Default-Start:  2 3 4 5
# Default-Stop:   0 1 6
# Short-Description: Starts RhodeCode
### END INIT INFO

USER=rhodeuser

VENV_DIR=/usr/rhode/venv
DATA_DIR=/usr/rhode/data

CELERY_ARGS="$VENV_DIR/bin/paster celeryd $DATA_DIR/production.ini"
RHODECODE_ARGS="$VENV_DIR/bin/paster serve $DATA_DIR/production.ini"

CELERY_PID_FILE=/var/run/celeryd.pid
RHODECODE_PID_FILE=/var/run/rhodecode.pid

start_celery() {
    /sbin/start-stop-daemon \
        --start \
        --background \
        --chuid $USER \
        --pidfile $CELERY_PID_FILE \
        --exec $VENV_DIR/bin/python -- $CELERY_ARGS
}

start_rhodecode() {
    /sbin/start-stop-daemon \
        --start \
        --background \
        --chuid $USER \
        --pidfile $RHODECODE_PID_FILE \
        --exec $VENV_DIR/bin/python -- $RHODECODE_ARGS
}

stop() {
    /sbin/start-stop-daemon \
        --stop \
        --user $USER
}

case "$1" in
    start)
        echo "Starting Celery"
        start_celery
        echo "Starting RhodeCode"
        start_rhodecode
        ;;
    stop)
        echo "Stopping RhodeCode and Celery"
        stop
        ;;
    restart)
        echo "Stopping RhodeCode and Celery"
        stop
        echo "Starting Celery"
        start_celery
        echo "Starting RhodeCode"
        start_rhodecode
        ;;
    *)
        exit 2
        ;;
esac

exit 0