I was also unsure how to get (South?) to update to my Postgre db instead of the dev.db.
Mezzanine 1.0 makes full use of Django's staticfiles app. With DEBUG enabled, all your static content will be served dynamically from within each app's static directory. Once DEBUG is off, as you'd do for production, you need to run the collectstatic command to move all those files into a single static directory, which you then alias to in your web server's config, be it Apache, NGINX or something else.
https://docs.djangoproject.com/en/dev/howto/static-files/
As for your database settings, simply define those in your project's settings module. Mezzanine will create a local_settings module for you with the SQLite settings defined for development. This shouldn't be checked into version control, as it will be different per environment.
https://docs.djangoproject.com/en/dev/ref/settings/#database...
If you hit any other things like these, please feel free to post to the mailing list where I and others will be only too happy to guide you.