Django uses real Python files for settings, Trac uses a .ini file, and some other pieces of software uses XML files to hold this information.
Are one of these approa
It depends largely on how complicated your configuration is. If you're doing a simple key-value mapping and you want the capability to edit the settings with a text editor, I think ConfigParser is the way to go.
If your settings are complicated and include lists and nested data structures, I'd use XML or JSON and create a configuration editor.
For really complicated things where the end user isn't expected to change the settings much, or is more trusted, just create a set of Python classes and evaluate a Python script to get the configuration.