I created a new account just now using a default django app.
I am able to ssh into my machine using the webXXX.webfaction.com
However, pinging my website's address or visiting it on the browser results in not being able to resolve the address.
e.g: ping meric.webfactional.com
Webfaction completed the setup of my account an hour ago.
We are currently experiencing some DNS zone update issues, which we hope to have resolved soon. We will update this answer when the issue has been resolved.
In the mean time, you can SSH into your machine using the host name, which is Web350.webfaction.com