I\'m using Ubuntu 10.04.
I create a django project under /home/wong2/Code/python/django2/ named atest
and create a wsgi file setting.
I had the same problem due to restricted file permissions.
By default your home folder user has the settings:
ls -l /home/
drwx------ 36 user user 12288 Nov 28 20:56 user
meaning that no one else but yourself is able to even browse that folder.
Adding execute option to the folder fixed my problem
chmod o+x /home/user/
ls -l /home/
drwx-----x 36 user user 12288 Nov 28 20:56 user