The app runs fine using django internal server however when I use apache + mod_python I get the below error
File \"/usr/local/lib/python2.6/dist-package
Try changing to the following:
SetHandler python-program
PythonHandler django.core.handlers.modpython
SetEnv DJANGO_SETTINGS_MODULE mysite.settings
PythonOption django.root /mysite
PythonPath "['/root/djangoprojects', '/var/www'] + sys.path"
PythonDebug On
Use no "/" at the end of the PythonPath entries (that may be an issue, I had problems with that at least on Windows).
The entries '/root/djangoprojects/mysite','/root/djangoprojects/mysite/polls' are not needed since you will be referring to your modules by full name (i.e. mysite.sttings means the settings module inside the mysite package, which is the correct way to access it in the PythonPath /root/djangoprojects).