I resisted reading the first edition because it came out just shortly before Django 1.0. As a result, the code samples were not fully usable with the latest Django codebase.
The second edition does not suffer from this problem. The code matches development version 1.1. It also has a number of helpful additions: material on current version control (git, mercurial, and subversion), pip (for installing packages), virtualenv (for isolating different development environments), fabric (for repeatable releases to servers), and unit testing.
The text covers the development of two projects: a CMS and a code-sharing site. It has excellent examples of managers (a topic I have not seen covered in other Django books), templatetags, installable packages (markdown, comments, akismet for anti-spamming, pygments for color code, tinymce for rich text-editing, pydelicious, registration), and native packages (RSS feeds, flatpages, auth), plus all the usual topics: urls, models, views, forms, and templates. The text is very strong on using generic views.
The writing is excellent and flows logically. It's a pleasure to read.