That's true: Django works on Jython without any special patch!
For anyone interesting in trying it out, I've written the steps on the Jython wiki.
For Jython, I think this is great. Not only showing that it is alive and well, but also to expose how much progress has been done in almost every front. Better unicode support, an improved parser, setuptools compatibility, performance improvements, experimental system-restarting support, datetime and decimal support on zxJDBC, are some of the features that enables this milestone. Looking back, it is a lot of impressive work of all Jython developers.
For Django this is great too! I think the codebase got improved by some of the changes that were needed to enable Jython support, and this sort of confirms Django as the web framework that every Python platform want to get running (Jython, PyPy, IronPython... not to mention AppEngine). I'm also amazed at the response we got from the Django developers. They managed to include the needed changes in the middle of the rush for the 1.0 release. Amazing.
For me... well, I'm very, very happy. It has been a lot of fun so far, and there will be more of it. Did I mention that I will be speaking at DjangoCon on a few weeks? ;-)
Moreover, there are 4 days left for the GSoC coding period, and I have another objective to meet. Stay tuned...
Update: And here is the other goal completed: Deploying Django projects on Java App Servers.