Now that the Python web framework discussion has heated up, it looks like the moribund Spyce framework is finally getting some love. Spyce is a PSP (Python Server Pages) framework with its own templating language. Jonathan Ellis's Spyced blog mentions recent checkins to a new Subversion repository, but I can't find a reference to it on the Spyce website.
I've just about settled on CherryPy for my web framework needs, but if Spyce is coming back, it looks like yet another thing I need to check out one of these days.
Update: looks like the svn repo is at http://svn-hosting.com/svn/spyce.