[Django]-Is it good to use Django 1.1 on App Engine?

Yes, Django 1.1 is well-supported on Google App Engine. You’ll need to do your own installation thereof locally, to enable it in the GAE SDK — but it’s already there for you on the App Engine production servers, see the docs — just do

import os
os.environ['DJANGO_SETTINGS_MODULE'] = 'settings'

from google.appengine.dist import use_library
use_library('django', '1.1')

Edit: Django is by far the leading web app framework for Python, and its popularity is surely well-deserved. However, personally, I use it only when I “have to” (mostly to get collaborators and make them comfy on a project’s technology stack) — maybe because what I tend to develop server-side are more “web services/apps” than “sites” (the UI part I’d rather leave to the browser, with Dojo, jQuery, or Google Closure!-), I find Django too “heavy” for my tastes. I’d rather have Werkzeug, or tipfy — the latest and greatest super-light Wekzeug-based App Engine – specialized framework!-) — I love e.g. tipfy’s ability to use Jinja2 and/or Mako in lieu of Django’s templates, the simple and flexible authentication and session schemes, and the debugger — in addition to all the luscious, light-weight flexibility of Werkzeug and Webapp. But, hey, that’s a very subjective opinion of mine!-)