tabo: Django, Or why I chose it over turbogears and ruby on rails. That was pretty much what I have been through. I was also at a stage deciding on a frame work for a new project. While I have done most of freelance web development on PHP previously, as a Python developer of almost 6 years, I decided to look out for a Python-based frame work this time.
On the other hand, Django works well without setuptools, and there's even a how to for DreamHost. Documentation is considerably better than TurboGears (though you still need to look into the source code to work out the magic). It is also easy to integrate Kid and MochiKit into a Django deployment.
Afterall, both of them are great toolkits that represent the next generation of Python web frame work. I still don't like the ORM approach for all these new frame works, but I guess for small sites with simple functionality, they should have no problem scaling.
Update: Deploying TurboGears on DreamHost. Nice. Except that you need to compile your own version of Python and install it inside your home directory. Yuk.