Searching on Google reveals x2 code snippets. The first result is to this code recipe which has a lot of documentation and explanation, along with some useful discussion underneath.
However, another code sample, whilst not containing so much documentation, includes sample code for passing commands such as start, stop and restart. It also creates a PID file which can be handy for checking if the daemon is already running etc.
These samples both explain how to create the daemon. Are there any additional things that need to be considered? Is one sample better than the other, and why?
Current solution
A reference implementation of PEP 3143 (Standard daemon process library) is now available as python-daemon.
Historical answer
Sander Marechal's code sample is superior to the original, which was originally posted in 2004. I once contributed a daemonizer for Pyro, but would probably use Sander's code if I had to do it over.