You're not a programmer quite yet. I like to think of this book as giving you your "programming brown belt". You know enough to start another book on programming and handle it just fine. This book should have given you the mental tools and attitude you need to go through most Python books and actually learn something. It might even make it easy.
I recommend you continue with http://www.djangobook.com/ and start going through the 2nd Edition of The Django Book. Even if you never plan on doing Python web programming, going through the book will cement your skills in Python using an actual practical activity. It is also a better framework than the lpthw.web you were using, but all of the concepts you've learned so far apply to the Django web framework. Just take your time, ask questions, and you'll get through it.
You could probably start hacking away at some programs right now, and if you have that itch, go ahead. Just understand anything you write will probably suck. That's alright though, I suck at every programming language I first start using. Nobody writes pure perfect gold when they're a beginner, and anyone who tells you they did is a huge liar.
Finally, remember that this is something you have to do at least a couple hours a night for a while before you can get good. If it helps, while you're struggling to learn Python every night, I'm hard at work learning to play guitar. I work at it about 2 or 4 hours a day and still practice scales.
Everyone is a beginner at something.