This doesn't work for me.

$ python django-admin.py startproject myproject

I am running a ubuntu virtual m/c on my windows system. By default ubuntu 12.04 comes with python 2.7.3 so I am using that only I downloaded or installed (whatever it does since I am new to django) by issuing the following command-

git clone https://github.com/django/django.git
django directory is successfully created.

I want to create a sample django application. So for this I am issuing the following command-

$ python django-admin.py startproject tango_with_django_project

Obviously, it will throw error since the default ubuntu python doesn't know that django has been installed.

My Question is how to integrate python with this Django and create a sample django application?

The comments above pointing you to the documentation are of course correct, but there are also other resources that can help you start your site the 'right' way. In particular, cookiecutter and its related Django template will get you set up with some really good defaults and valuable third-party apps straight away. If you have cash to spend I'd also heartily recommend the book Two Scoops of Django, by the people who wrote the two applications to which I've linked.

Jeff Knupp has also written a thoroughly useful blog post on starting a Django project the right way, which covers useful topics such as the importance of:

• source control;
• automated testing (see also this excellent book);
• isolating your development environment to smooth deployment; and
• managing your database with migrations (included in Django since version 1.7).