The instructions on Google's installation page for PIL are incorrect.
I had initially upgraded right after Leopard was released, at the end of last year, only to experience a myriad of problems like keyboard freezes (and here). I was so disenchanted that I wrote posts with titles like Leopard is tarnishing the reputation of OS X and Leopard: Great eye candy, pity the keyboard doesn’t always work before giving up and downgrading to Tiger.
./manage.py shell.
To install iPython on OS X Tiger (yes, my Leopard discs are still safely in their box since I downgraded and I don't see any reason to bring them back out yet), I followed the following steps:
The interesting thing was that IE would connect to the built-in web server on the Mac without problem (using the Shared Network setting, I could also connect to any other web site.) But I couldn't connect to the development server either via IP or via the computer name using Bonjour for Windows.