Python / Django Web service Confusion
There are so many things like SOAPpy, XML-RPC, JSON-RPC RESTful, web service.

This should give you a clue - there are different services out there that use one or more of these mechanisms. 

Basically all i want to know is what is the standard way of implementing web service in Python/Django and has anyone implemented in live production environment

There is no single standard way of implementing a web service. This is as true for Django/Python as for other web frameworks. 
Different people have used Django in different ways to create a web service to suit their needs.
I am trying to explore more about web service in Python/Django and to be honest i am quite confused. There are so many things like SOAPpy, XML-RPC, JSON-RPC RESTful, web service. 
Basically all i want to know is what is the standard way of implementing web service in Python/Django and has anyone implemented in live production environment