Have a look at Epydoc (http://epydoc.sourceforge.net/), a documentation system that generates HTML and PDF docs. Plain text, Javadoc, ReStructuredText, and Epytext docstrings are handled gracefully.
ReStructuredText (or a suitable subset of RST) is probably the best choice IMHO. SB -- http://mail.python.org/mailman/listinfo/python-list
