How do you develop against OpenID locally
The libraries at OpenID Enabled ship with examples that are sufficient to run a local test provider. Look in the examples/djopenid/ directory of the python-openid source distribution. Running that will give you an instance of this test provider.
I have no problems testing with myopenid.com. I thought there would be a problem testing on my local machine but it just worked. (I'm using ASP.NET with DotNetOpenId library).
The 'realm' and return url must contain the port number like 'http://localhost:93359'.
I assume it works OK because the provider does a client side redirect.
I'm also looking into this. I too am working on a Django project that might utilize Open Id. For references, check out:
Hopefully someone here has tackled this issue.