Using current IDLE in 2.7 tip (as in 2.7.6rc1), selecting a file to open in the IDLE menu or on the command line cause IDLE to either (depending on the platform and invocation) crash or hang due to an uncaught exception in idlelib/IOBinding.py:

/usr/local/bin/idle2.7 a.py
Exception in Tkinter callback
Traceback (most recent call last):
  File "/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/lib-tk/Tkinter.py", line 1470, in __call__
    return self.func(*args)
  File "/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/idlelib/IOBinding.py", line 222, in open
    flist.open(filename)
  File "/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/idlelib/FileList.py", line 36, in open
    return self.EditorWindow(self, filename, key)
  File "/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/idlelib/PyShell.py", line 131, in __init__
    EditorWindow.__init__(self, *args)
  File "/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/idlelib/EditorWindow.py", line 323, in __init__
    io.loadfile(filename)
  File "/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/idlelib/IOBinding.py", line 258, in loadfile
    chars = self.decode(chars)
  File "/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/idlelib/IOBinding.py", line 296, in decode
    enc = coding_spec(chars)
  File "/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/idlelib/IOBinding.py", line 129, in coding_spec
    for line in lst:
NameError: global name 'lst' is not defined

The culprit is 3d46ef0c62c5 for Issue18873 which did a faulty backport of a change from the 3.x branches.

New changeset 7fde94ad5df4 by Serhiy Storchaka in branch '2.7':
Issue #19426: Fixed the opening of Python source file with specified encoding.
http://hg.python.org/cpython/rev/7fde94ad5df4

Thank you Ned. Definitely IDLE needs more unit tests.

New changeset e0475c44832f by Benjamin Peterson in branch '2.7':
backport #19426
http://hg.python.org/cpython/rev/e0475c44832f