Does this module work with Django 1.2?

Yes, this module is tested and should work fine with Django 1.2.

Does this module support offline authentication?

No, this module depends on the yubico-python module and only supports the safest, online OTP authentication against Yubico or your own validation servers.

Can multiple users use the same YubiKey to log in?

Yes, the only requirement is that your website account usernames are unique.

This is required because user must enter his username + OTP to log in.

If you want more users to share the same YubiKey, it would be the safest to enable the YUBICO_USE_PASSWORD setting (you can read more about the available settings at the Settings page).

How can I customize the login templates?

You can customize the login templates by copying the login.html and password.html files from the django_yubico/templates/django_yubico/ folder to your Django application templates folder and editing them (you must preserve the directory structure or change the path to the template files in django_yubico/views.py).