In your view, you have to retrieve the selection that the user made and use it to filter the choices for the next form. Something like:
form = FirstForm(request.POST)
if form.is_valid():
uni = form.cleaned_data['uni']
courses = Course.objects.filter(university__name=uni).order_by('name')
return render_to_response("registration/step3.html", {'courses': courses}, RequestContext(request))