This my Answer to the stackoverflow question: Can I document Python code with doxygen (and does it make sense)?
An other very good documentation tool is sphinx. It will be used for the upcoming python 2.6 documentation and is used by django and a lot of other python projects.
From the sphinx website:
- Output formats: HTML (including Windows HTML Help) and LaTeX, for printable PDF versions
- Extensive cross-references: semantic markup and automatic links for functions, classes, glossary terms and similar pieces of information
- Hierarchical structure: easy definition of a document tree, with automatic links to siblings, parents and children
- Automatic indices: general index as well as a module index
- Code handling: automatic highlighting using the Pygments highlighter
- Extensions: automatic testing of code snippets, inclusion of docstrings from Python modules, and more