Django pretty well requires a database to do anything useful. It includes backends for a number of databases, such as mysql, portgres, and sqlite. Seeing as sqlite is by far the easiest to install, I started there. Using the dbapi module form FePy as a starting point, I extended the sqlite module to make it work for django (and made some tweaks to dbapi.py in the process).
There were a few hurdles to jump through, but for the most part it worked. I was able to run though the Django tutorial and build the complete 'poll' application. Except for some double-escaping on the admin page and a stupid bug in NWSGI, it works.
From there I started trying to get MS SQL Server working. This one is what most people would be using anywhere, and it doesn't require an extra assembly. For the most part it works, as long as you insure that all of the cursors are closed. If not, it doesn't like to work. The SQL Server classes really don't like having a DataReader open when committing a transaction. Unfortunately, manually closing cursors isn't going to scale to all of Django, so another approach will be necessary.
Using the sqlite3 driver requires System.Data.SQLite. Make sure you use the correct architecture; on Vista 64, IronPython requires the x64 driver.
Using the mssql driver requires code from the django-mssql project, with a minor change to base.py to load the mssql driver instead of the internal one.
Download sqlite3 and mssql drivers.