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I encountered this bug with the following filesystem layout
project/build/bin/main-gdb.py -> ../src/main-gdb.py
project/build/src -> ../src/
project/src/main-gdb.py -> ../py/main-gdb.py
project/py/main-gdb.py
where root/py/main-gdb.py contains
import os
print(os.path.realpath(__file__))
Actual Result:
project/build/py/main-gdb.py
instead of 
project/py/main-gdb.py
The cause of this bug is the fact that os.path._resolve_link calls os.path.normpath, which is not symlink-safe.
Specically, this is bad:
os.path.normpath('project/build/src/../py/main-gdb.py')
The correct thing to do is never call normpath; instead leave .. components and pop off the last element after ensuring that the preceding directory is not a symlink.
This bug seems pretty severe to me, because it prevents imports from working.
Exact python --version and Debian package versions:
Python 2.6.7 (2.6.7-4)
Python 2.7.3rc2 (2.7.3~rc2-2.1)
Python 3.2.3 (3.2.3-1)

Is this a duplicate of issue 6975, or something different?
2.6 only gets security patches. (We use the version field to show what version we need to apply the fix to.)

Indeed, this is pretty bad behaviour, especially for realpath(). Both abspath() and normpath() should never be called before any symlinks are resolved.
Of course, fixing it as a bug means it could break existing code which relies on ".." fragments being folded.

Yeah, this is a duplicate of issue 6975.
Sorry also about the version thing.
Although I can set this as closed: duplicate, I don't seem to be able to set what bug this is a duplicate of.