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This line:
ImproperlyConfigured: Error loading MySQLdb module: this is MySQLdb version (1, 2, 5, 'final', 1), but _mysql is version (1, 2, 3, 'final', 0)
indicates you might have a version mismatch between MysqlDB and MySQL.
Sounds like looking in to it and reinstalling your dependent libraries resolved the issue.
To describe the issue in further detail:
In this case apt-get was installing MySQL-python==1.2.3. The latest version is MySQL-python==1.2.5.
However apt-get was not finding it, so completely removing MySQL-python==1.2.3 using:
sudo apt-get remove --purge python-mysqldb
and then reinstall via pip
sudo pip install mysql-python
(Note the package names are slightly different)
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In the interest of helping others who may come to this post with the same error:
I was receiving the same error, but my MySQL-python version was the same as the expected: 1.2.5. The problem was that I had the MySQLdb folder symlinked into my project’s root folder. By moving the symlinked folder into the folder that holds my Django settings I was able to fix the issue.