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My bug report refers to the following code block in subprocess.py. The problem is the same in 2.6.7 and 2.7.3:
=== From subprocess.py in Python 2.7.3 Source Distribution:
 # Wait for exec to fail or succeed; possibly raising exception
 # Exception limited to 1M
 data = _eintr_retry_call(os.read, errpipe_read, 1048576)
 finally:
 # be sure the FD is closed no matter what
 os.close(errpipe_read)
===
However, Python 3.2.3 appears to be doing this correctly; it loops, gathers the data from multiple os.read calls, and doesn't make huge (1048576) os.read requests:
=== from subprocess.py in 3.2.3 source distribution
 # Wait for exec to fail or succeed; possibly raising an
 # exception (limited in size)
 data = bytearray()
 while True:
 part = _eintr_retry_call(os.read, errpipe_read, 50000)
 data += part
 if not part or len(data) > 50000:
 break
===