I have used PyMeld (http://www.entrian.com/PyMeld/) which is one of very few that gives a 100% separation of code and presentation, in fact PyMeld is not strictly speaking a template system at all. I have also used Cheetah. (http://www.cheetahtemplate.org/) However for a recent project (http://muti.co.za) I ended up using Python's built in %s templating engine. The reason for this was performance. The %s native system is extremely fast. In my somewhat informal benchmarks PyMeld was two orders of magnitude and Cheetah one order of magnitude slower than Python native templates. I don't mean to criticze these two systems, they are both excellent, and I probably could have spent some time trying to figure out why they were so much slower but in the end it was quicker for me to go with something I knew was super fast. I did try compiling the Cheetah templates which provided a small performace boost but it was still much slower than native templates. (I also tried the new $ based native template system in Python 2.4 but it doesnt have the flexible formatting support that the % one has)
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