I\'m using Django 1.5 & Python 2.7 on Windows + Cygwin. The following command gives me an error in bash shell
$ python /cygdrive/c/Python27/Lib/site-pac
You seem to have Python installed in C: instead of in /usr/bin/python or similar. I'm guessing you installed the Windows port of Python from python.org, and not the Cygwin python package. In this case, the python executable is not using Cygwin (it's running native) and is expecting Windows-formatted path names.
Further, your Django seems to be installed in your Windows Python install. Cygwin is probably completely out of the loop.