Recently, Google has started AppSpot project, offering hosting of web applications for free. This opens a new era of web development. The engine supported currently (2008-07-20) is Python. It is expected to see other open source technologies supported in the future.
These pages are devoted to Python development. To start with Python, download the installation from the Python web site (link).
I will use Eclipse (link) as the development environment, with PyDev (link) plugin. Download Eclipse Classic package. It requires Java. Follow instructions on PyDev download page if you want to download and install PyDev directly from Eclipse IDE via Software Updates feature. This is a nice feature.
Set up PyDev path to Python interpreter in the Eclipse preferences. Now you are ready to create a new PyDev project.
Trying to launch the new test project I encountered an error "No python nature for project ..." and "project should have a python nature". - The reason for these errors is that Eclipse path must not contain spaces. Moved Eclipse folder from Program Files into Programs and everything worked afterwards.
Create a test class
Run or debug and the programs gets executed. The environment is ready.