Sitting in the Lightning Talks session right now. There is some very cool stuff. Ka-Ping's screen scrape and navigation stuff is very slick. It is neat for poking around a site and a page. It basically keeps a context of where you are, and you can nav forward/backward. It even has bits for submitting forms and whatnot. I pointed out my friend's module, Beautiful Soup, to him to check out.
Richard Jones showed off some funky Ducks game that came out of a "code up a game in 48 hours" competition. He also briefly demoed PyPI ("pippy"), a new Python software repository which supports upload.
There was also a userspace NFS daemon. Woah!
Lightning talks are always so much fun because of the random nature. People pull out all their neat little bits to demo. Stuff that isn't "big enough" to turn into big, official projects. Lightning talks give you a way to look behind the curtain to see all the stuff that is really going on out there.