Are there problems developing Django on Jython?
I'd say that if you like Django, you'll also like Python.  Don't make the (far too common) mistake of mixing past language's experience while you learn a new one.  Only after mastering Python, you'll have the experience to judge if a hybrid language is better than either one.
It's true that very few cheap hostings offer Django preinstalled; but it's quite probable that that will change, given that it's the most similar environment to Google's app engine.  (and most GAE projects can be made to run on Django)
The background  
I'm building a fair-sized web application with a friend in my own time, and we've decided to go with the Django framework on Python. Django provides us with a lot of features we're going to need, so please don't suggest alternative frameworks.
The only decision I'm having trouble with, is whether we use Python or Jython to develop our application. Now I'm pretty familiar with Java and could possibly benefit from the libraries within the JDK. I know minimal Python, but am using this project as an opportunity to learn a new language - so the majority of work will be written in Python.
The attractiveness of Jython is of course the JVM. The number of python/django enabled web-hosts is extremely minimal - whereas I'm assuming I could drop a jython/django application on a huge variety of hosts. This isn't a massive design decision, but still one I think needs to be decided. I'd really prefer jython over python for the jvm accessibility alone.
 Questions  
Does Jython have many limitations compared to regular python? Will running django on jython cause problems? How quick is the Jython team to release updates alongside Python? Will Django work as advertised on Jython (with very minimal pre-configuration)?
 Decision 
Thanks for the helpful comments. What I think I'm going to do is develop in Jython for the JVM support - but to try to only use Python code/libraries. Portability isn't a major concern so if I need a library in the JDK (not readily available in python), I'll use it. As long as Django is fully supported, I'm happy.