Dreamhost - problem with Django installation

[PythonistL]

I am trying to setup Django on Dreamhost.
I followed the instructions at
http://wiki.dreamhost.com/index.php/Django but no success.
I tried the
Troubleshooting  described there and
the script
#################

#!/usr/bin/python2.3
from fcgi import WSGIServer
def test_app(environ, start_response):
    start_response('200 OK', [('Content-Type', 'text/plain')])
    yield 'Hello, world!\n'

WSGIServer(test_app).run()

###################
But still I get 500 internal server error
and the error log says:

FastCGI: comm with (dynamic) server
"/home/bmabma/egsmtrade.com/hello.fcgi" aborted: (first read) idle
timeout (120 sec)
FastCGI: incomplete headers (0 bytes) received from server
"/home/bmabma/egsmtrade.com/hello.fcgi"

Any idea?
Thank you
Regards,
Lal.