I also use grappelli. I would be pleased with the normal django admin, but if you need to introduce a backend to someone else, grappelli is much more attractive.
The current version of grappelli 2.1 works well with django 1.2. The only problems that you (sometimes) encounter is that third-party applications sometimes have some problems that you can solve in most cases quite easily with changing the custom templates that they come with (in most cases these are just different names for css classes, etc. sometimes there are some js incompatibilities that you can easily solve!
The real version of grappelli also has a more convenient html / css structure that allows you to easily use your ui styles / elements in your own templates. Take a look at http://grappelliproject.com/ for this (this is not entirely true for the real version, but gives a little impression of what to expect!)
According to the developers, grappelli should soon work together with the amazing django-admin tools, which offer you drop-down menus inside the admin and a custom index panel! The installation is not very complicated, just remember to transfer the adminmedia folder to manage.py! In general, I think this is highly recommended (also check out django-filebrowser and medman, if you don't already know them that come from the same developers and work very well together with grappelli)!
Bernhard vallant
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