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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.