> Using  "round(number[, digits])" in a program I get no rounding

It works for me. Can you show an example of it not working?

py> round(1.23456789012345, 3)
1.235


> Using the same command in the terminal interpreter it returns
> ...   (3 periods) then hangs requiring ^C to continue.


That sounds like the interactive interpreter is waiting for a closing parenthesis (round bracket). It will sit and wait forever for you to finish typing the command. If you hit ENTER, you'll just get another prompt.

py> round(1.23456789012345, 3
...
...
... )
1.235


If this does not explain what you are seeing, you will have to give us more information, including examples of the failures and instructions for how to replicate the failure.