App shows up as "not synced" after convert_to_south
As long as you are not getting any errors, this is fine. There are two ways to create a table in Django/South:

Running syncdb which automatically creates the initial tables of Django.
Running an initial migration of an app which also creates the tables of that app.

These are different approaches: tables that were 'synced' are not created with a migration or vice versa. So if South has made the tables with an initial migration then it is correct that they are not 'synced'.
To check whether it has worked correctly, you need: an entry in the south_migrationhistory table (i.e., South knows that the migration has been done) and the table(s) with the proper structure in the database. If that's the case then there's nothing to worry about.
I ran the convert_to_south command on my app. Everything seems to have gone fine: the migration is in south_migrationhistory table, migrate --list show the migration as applied BUT when I do syncdb, the app is still shows as "Not Synced". It suggests I migrate those (which does nothing, since there is nothing to migrate)
Is this behaviour expected?