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The particular app that is getting affected is clearing out and rebuilding the logging configuration without restarting in response to a notification that the application config has changed. This was working OK on 2.6, but started misbehaving when ported to 2.7.
It's http://pypi.python.org/pypi/ConcurrentLogHandler that's calling self.stream.flush() inside release(), and I suspect that *is* a bug on that side as well.
It's also possible that we should just be skipping the use of ConcurrentLogHandler entirely on 2.7, but I haven't looked into the feasibility of that as yet.
This specific bug report is just because I noticed that the stdlib is *trying* to be tolerant of handler misbehaviour, but not quite succeeding in this particular case. Perhaps we should be writing something out to stderr when ignoring one of these errors?