1. WSGI
You need to have a special WSGI script in your Django project. Don't put this one in the same directory as your settings file but use a subdirectory. Only then you can enter a separate Directory with the appropriate allow and deny. You don't want to expose your directory with your settings file.
2. Settings.py
It is very important to understand that an unattended, production Apache is really something different from ./manage.py runserver. For example, you must use an absolute path for the location of your SQLite database instead of the more familiar "django.db". Fortunaly, the Apache error_log shows this type of errors.