This program:

import subprocess, sys
p = subprocess.Popen(['bash', '-c', 'while true; do echo x; sleep 1; done'], bufsize=0, stdout=subprocess.PIPE)

for line in p.stdout:
    sys.stdout.buffer.write(line)
    sys.stdout.flush()

sits around and does nothing on Python 2.7.3.  It works (i.e. prints 'x' once per second) on Python 3.

This was http://bugs.python.org/issue3907 and is supposedly fixed, but it's not.