There were some excellent answers to this question already, however, they are now outdated.

I've been able to get the module installed, but "python manage.py runserver" fails with

 iMac:myproject drhoden$ python manage.py runserver
 Validating models...
 Unhandled exception in thread started by <function inner_run at 0x10496f0>
 Traceback (most recent call last):
   File "/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/django/core/management/commands/runserver.py", line 48, in inner_run
     self.validate(display_num_errors=True)
   File "/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/django/core/management/base.py", line 249, in validate
     num_errors = get_validation_errors(s, app)
   File "/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/django/core/management/validation.py", line 22, in get_validation_errors
     from django.db import models, connection
   File "/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/django/db/__init__.py", line 41, in <module>
     backend = load_backend(settings.DATABASE_ENGINE)
   File "/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/django/db/__init__.py", line 17, in load_backend
     return import_module('.base', 'django.db.backends.%s' % backend_name)
   File "/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/django/utils/importlib.py", line 35, in import_module
     __import__(name)
   File "/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/django/db/backends/mysql/base.py", line 13, in <module>
     raise ImproperlyConfigured("Error loading MySQLdb module: %s" % e)
 django.core.exceptions.ImproperlyConfigured: Error loading MySQLdb module: dynamic module does not define init function (init_mysql)

 ^CiMac:segisys drhoden$ 

Likewise, from the python shell:

<
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