Can't get Django to work on windows XP - I must be missing something obvious!

I really must be missing something obvious. I've installed app
engine on windows xp. All seems to work until I tried a Django
example!
I first tried to make a django project:

django-admin.py startproject testapp

failed because i think django-admin.py was not not on the path.

I updated windows path to get to the file

failed again because django.core import management
ImportError: No module named django.core

Please tell me if I forgot to read something somewhere ?!

thanks

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