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Use Markdown With Django
http://www.freewisdom.org/projects/python-markdown/Django
Install markdown and make sure it is in your python path.
http://www.freewisdom.org/projects/python-markdown/Installation
Include 'django.contrib.markup' in INSTALLED_APPS in your settings.py file.
..load
{% load markup %}
..then use
{{ post.body|markdown }}
