Check the structure of project:

Here I use Eclipse, and my project have this structure:

myproject>myproject>app

In your case:

djangotest2>djangotest2>books

Or:

djangotest2>books

And in installed_apps:

INSTALLED_APPS = (
    'books',
)


2012/6/16 Sabbineni Navneet <sabbsnavneet1...@gmail.com>

> project name is djangotest2 and app name is books
> settings.py
> INSTALLED_APPS = (
>     'djangotest2.books',
>
>
>
> )
> DATABASES = {
>     'default': {
>         'ENGINE': 'django.db.backends.mysql', # Add 'postgresql_psycopg2',
> 'mysql', 'sqlite3' or 'oracle'.
>         'NAME': 'xam',                      # Or path to database file if
> using sqlite3.
>         'USER': 'root',                      # Not used with sqlite3.
>         'PASSWORD':'',                  # Not used with sqlite3.
>         'HOST':'',                      # Set to empty string for
> localhost. Not used with sqlite3.
>         'PORT':'',                      # Set to empty string for default.
> Not used with sqlite3.
>     }
> }
>
>
> It shows an error :no module named books found when i use syncdb.
> so anyone can please help.......
>
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