Prem,

  your Django does *not* have to be on your PATH, but it either has to
be in your PYTHONPATH or there must be a link from your Python
site-packages directory.

  The easiest way is to add c:/Django-1.0.4  (notice the forward
slash) to your Windows PYTHONPATH environment variable (or create it
if it does not exist)

  Cheers

    Jirka

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