[Django]-Django non-rel – how do I install it?

Yes, the instructions are a little hidden and you can not find it via django-nonrel for some reason. Look for django-appengine instead. Check this tutorial about django-appengine. There you will also find all the installation instructions, how to use it and what to keep in mind when using it.

And about your specific question (1). You must use the modified Django 1.3 version of django-appengine (everything described in the link above). Don’t use the official Django version. Also it must be in your project directory to work properly with GAE.