I have just spotted that something is wrong with my django-admin.py command. I checked similar SO posts on django-admin.py problems but nothing seems to be related to my pro
The problem in my case was the I've lost .py file association rules.
If you have similar problem you can check in command line what is the result of:
assoc .py
If there is no such association you need to create it:
assoc .py=Python.File
and create rule for Python.File:
ftype Python.File="c:\python27\python.exe" "%1" %*
(Replace with whatever the path is to your python interpretter.)
now django-admin.py accepts command line args and everything works fine!
This would be better as it does not require touching the registry at all:
https://stackoverflow.com/a/10732170/1585863