Comment 3 for bug 963684

I've committed a fix, though the database part is somewhat crappy. I wanted to avoid breaking those on Django 1.2 and 1.3 with the old style database config so did not set a default DATABASES dictionary. It's possible to do so but somewhat messy as Django 1.2+ will ignore the old style configs if DATABASES doesn't coerce to False. Once we drop support for 1.1 we can remove the old style completely and announce a required change to local_settings.py as well as remove the case statement added for the TEMPLATE_LOADERS