Getting started with Django-Instant Django
InstantDjango uses sqlite by default. What database did you set your normal django to use? and you did you create that database before you ran the syncdb?
InstantDjango uses different packaging for all the django required libraries (portable versions) which might be less stable but they should work for your development needs.
I've been trying to get Django running and when going through the intro to projects it seems that I keep having trouble when I get to the 'sync database' section.  When using InstantDjango this doesn't seem to be as much of a problem. My question is, can one just do Django development with the InstantDjango program or do you really need to run it the normal way?