Thanks for the reply Ilya. The problem was that the old, default Python directory was still the default, so django searched there for django-admin.py. Doing this manually by moving django-admin.py into the desired startproject folder and adding "python" in front of django-admin.py startproject mysite solved the problem. It's just that both django-admin.py and django-admin.pyc need to be in the startproject parent folder.
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