I am having the same issue. Did you find a solution? 
Python is working, Django is reporting a version number. 

When I run django-admin.py startproject mysite I get the folder create and 
then the following errors:

Traceback (most recent call last):

  File 
"/Library/Frameworks/Python.framework/Versions/2.7/bin/django-admin.py", 
line 5, in <module>

    management.execute_from_command_line()

  File 
"/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/site-packages/django/core/management/__init__.py",
 
line 399, in execute_from_command_line

    utility.execute()

  File 
"/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/site-packages/django/core/management/__init__.py",
 
line 392, in execute

    self.fetch_command(subcommand).run_from_argv(self.argv)

  File 
"/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/site-packages/django/core/management/base.py",
 
line 242, in run_from_argv

    self.execute(*args, **options.__dict__)

  File 
"/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/site-packages/django/core/management/base.py",
 
line 285, in execute

    output = self.handle(*args, **options)

  File 
"/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/site-packages/django/core/management/commands/startproject.py",
 
line 30, in handle

    super(Command, self).handle('project', project_name, target, **options)

  File 
"/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/site-packages/django/core/management/templates.py",
 
line 156, in handle

    content = content.decode('utf-8')

  File 
"/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/encodings/utf_8.py",
 
line 16, in decode

    return codecs.utf_8_decode(input, errors, True)

UnicodeDecodeError: 'utf8' codec can't decode byte 0xb0 in position 37: 
invalid start byte

On Thursday, 25 April 2013 13:32:32 UTC-4, Eric Nielsen wrote:
>
> I am brand new to Django and I am having a big problem right off the bat. 
> I cannot use startproject to begin my web app. When I use this command:
>
> /Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/site-packages/django/bin/django-admin.py
>  
> startproject cms
>
> I get this error:
>
> "UnicodeDecodeError: 'utf8' codec can't decode byte 0xb0 in position 37: 
> invalid start byte"
>
> and then it doesn't create the web app. I have not even done any 
> programming and it seems like this is something that is wrong with the 
> Django files, but I am really confused as how their own files would have a 
> character not in the English language that would be making this error. I 
> have been searching online and I have found people with Unicode Decode 
> Errors, but not any during this specific step and I have not been able to 
> find an answer so far. I am running Django on a Mac with Snow Leopard and 
> am using the stable version of Django with Python 2.7. I have been trying 
> to figure this out for a while now and I just keep hitting walls, I would 
> really like to try Django. Thanks for any help!
>

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