As has been stated, django-pyodbc is a good way to go. PyODBC is probably the most mature SQL Server library for Python there is.
The only thing you may have problems with is that pyodbc doesn’t support stored procedures very well (you can call them, but you have no way to get results from them). You can call them using pymssql, but I would avoid it if at all possible as it doesn’t support the standard DB-API interface and may be subject to changes. If you need to do this, your best bet is to use adodbapi directly (it’s included with the python win32 package, which you’ll probably end up installing anyway).