Which Apache package is best for mod_wsgi Django application

I'd definitely go for mod_wsgi. It allows you to define users, number of threads/processes on a per application basis.

I'm not quite sure about the memory requirements but mod_python is considered inferior to mod_wsgi on just about every FAQ or hint you see. WSGIDaemonProcess allows you to configure a lot of options, stacksize, number of processes and the different timeouts may be of interest to you.

I have no experience with GoDaddy so I can't tell you about how far you can go configuring everything.

For the apache part I'd definitely use prefork with the right numbers (depends on your expected user numbers how many childs you want to allow)

For static hosting you could disable all the handlers and even force a certain MIME-Type so that the configuration will just work.

If memory is your bottleneck you might want to check on ngninx from my experience (not that much) memory usage can be predicted a lot better with nginx than with apache, I have no idea about mod-wsgi + ngninx however.

Ubuntu is a suitable choice. The Django team apparently uses it. For starters, Ubuntu has old and new versions of python. 2.5 is available in Hardy LTS, and 2.6 is in the newest stable release.

Secondly, django itself is available in the repositories, as python-django. This might seem pointless as people generally deploy Django from SVN, but it does mean there's a place to report integration problems and documented dependencies and suggestions.