Configure the virtual hosts

In this case 'mysite' is the name of the virtual host and 'my_site' is the name of the project, and server root directory. The server root was in my /Users/discodancer/Dev/my_site directory

<VirtualHost *:80>
  ServerAdmin jordanovskid@gmail.com
  DocumentRoot "/Users/discodancer/Dev/my_site"
  ServerName mysite
  ServerAlias mysite
  ErrorLog "/private/var/log/apache2/my_site-error_log"
  CustomLog "/private/var/log/apache2/my_site-access_log" common

  <Directory "/Users/discodancer/Dev/my_site">
    Options FollowSymLinks MultiViews Includes
    AllowOverride All
    Order allow,deny
    Allow from all
  </Directory>
  <Location "/">
    SetHandler mod_python
    SetEnv DJANGO_SETTINGS_MODULE my_site.settings
    PythonHandler django.core.handlers.modpython
    PythonPath sys.path+['/Users/discodancer/Dev/']
  </Location>

  # Do not use python interpreter for /media
  <Location "/media">
    SetHandler none
  </Location>

  # Do not use python interpreter for images
  <LocationMatch ".(jpg|gif|png)$">
    SetHandler None
  </LocationMatch>
</VirtualHost>

Then, to allow serving of media files, you need to make a symlink from django's contrib/admin/media directory to your project. The apache user normally does not have privileges to the django installation, so you need to do this.

ln -s /Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/django/
contrib/admin/media/Users/discodancer/Dev/my_site/media

(the path is too long, try not to paste the line breaks in your terminal :) Then make a file apache_settings.py in your project directory/server root and paste these lines in it:

import osos.environ['PYTHON_EGG_CACHE'] = '/Users/discodancer/Temp'

The path in my case is writable by the webserver (anyone for that matter). Finally add these 2 lines in the apache httpd.conf file. They will tell apache to load the settings from the file you just created.

PythonInterpreter my_site
PythonImport /Users/discodancer/Dev/my_site/apache_settings.py my_site

Restart the web server. I suppose you already know, but the apache httpd.conf file can be found in /etc/apache2/httpd.conf and the virtual hosts file can be found in /etc/apache2/extra/httpd-vhosts.conf. This should work :) at least it did for me. One more note: at the moment of writing there is no current MySQLdb module for python 2.6. I am using the one that works with python 2.5 and each time I import it it throws a warning that the sets module is deprecated. Just ignore this, it didn't cause any trouble to me. If someone can explain what it really means, i'd be grateful.