Python for web scripting
You asked whether HTML is allowed within Python, which indicates that you still think too much in PHP terms about it. Contrary to PHP, Python was not designed to create dynamic web-pages. Instead, it was designed as a stand-alone, general-purpose programming language. Therefore you will not be able to put HTML into Python. There are some templating libraries which allow you to go the other way around, somewhat, but that's a completely different issue.
With things like Django or TurboGears or all the other web-frameworks, you essentially set up a small, stand-alone web-server (which comes bundled with the framework so you don't have to do anything), tell the server which function should handle what URL and then write those functions. In the simplest case, each URL you specify has its own function.
That 'handler function' (or 'view function' in Django terminology) receives a request object in which interesting info about the just-received request is contained. It then does whatever processing is required (a DB query for example). Finally, it produces some output, which is returned to the client. A typical way to get the output is to have some data passed to a template where it is rendered together with some HTML.
So, the HTML is separated in a template (in the typical case) and is not in the Python code.
About Python 3: I think you will find that the vast majority of all Python development going on in the world is still with Python 2.*. As others have pointed out here, Python 3 is just coming out, most of the good stuff is not available for it yet, and you shouldn't be bothered about that.
My advise: Grab yourself Python 2.6 and Django 1.1 and dive in. It's fun.
I'm just starting out with Python and have practiced so far in the IDLE interface. Now I'd like to configure Python with MAMP so I can start creating really basic webapps — using Python inside HTML, or well, vice-versa. (I'm assuming HTML is allowed in Python, just like PHP? If not, are there any modules/template engines for that?)
What modules do I need to install to run .py from my localhost? Googling a bit, it seems there're various methods — mod_python, FastCGI etc.. which one should I use and how to install it with MAMP Pro 1.8.2?
Many thanks