This spring I read a course on Python in Vilnius University, Department of Mathematics and informatics. The course was not mandatory, which I suspect is one of the reasons why my students were quite a bright and motivated bunch. I began the course with a brief introduction to the Python language and the standard library, then dedicated a few lectures to Django and in the remainder I covered various libraries (GUI toolkits, Pygame) and techniques (testing, debugging, optimization).
One of the major tasks of the course (and the deciding factor in the final valuation) was to develop a project using Python. The students were given complete freedom over the topic of the project and the tools used, as long as Python was involved. The quality of the result varied, of course; had I given concrete tasks, the low bar would definitely have been higher. However, I am happy with how things turned out.
Probably the best-executed project was 1000 Online, an online multiplayer card game (see rules). It was developed by Vytautas Karpavičius. Vytautas apparently had prior experience with Python and Django, nevertheless, the quality of the app (and the code behind it) is impressive. Among the other projects, Gegute.lt, a Lithuanian clone of Reddit is still up and running. It's nothing too fancy, but looks quite clean for a university project. Other projects perhaps were not perfectly executed, but were very interesting conceptually. Jonas Keturka developed a bot (BitBucket) for the online strategy game Travian. Marius Damarackas developed a web-based guess-the-song game. He used YouTube for the song material and Last.fm (IIRC) to make you guess among similar songs, so that it would not be too easy. Andrius Chamentauskas developed a Puyo Pop clone (GitHub) with PyGame, complete with multiplayer and an AI. Paulius Budzinskas worked towards his course paper by developing a bacteria movement modelling and visualisation app (GitHub; Lithuanian only). David Abdurachmanov developed a spell-checker bot for WikiAnswers.com, with a really baroque and sophisticated architecture. I believe he has applied to Google Summer of Code with that project; I wonder how that is working out.
For reference, you can find links to all student repositories on GitHub/BitBucket in this list. Beware: some of them may be documented/commented in Lithuanian.
Another interesting effect of the course was that people started using Python in other related courses, for example in Mathematical Modelling and Numeric Methods. I even heard that the lecturer was impressed and expressed interest in learning Python. Another lecturer, this time a statistician, was interested in teaching and using SAGE at lab practice. Feeling such 'ripples' going through the department sure felt nice.
By the way, the university also offers lectures on Ruby, read by Saulius Grigaitis. I took some inspiration from him for the course form and content.