If you get only "Internal Server Error" or "Premature end of script headers" you should make a low level test.
Checkout the two test scripts:
Note: You can only used these files if...
Note: The Python instance must change the directory into the PyLucid project directory!
If special character are wrong, and you use the mysql_old backend, check out the django ticket: Mysql returns non-unicode strings
We have a patched mysql_old backend file in our subversion system, you can use: /CodeSnippets/django_backends_mysql_old/base.py
Copy the file "base.py" into "django/db/backends/mysql_old".