This is something peculiar to sage. The python shipped with sage does
not have this problem:
sh-3.2$ ulimit -S -v 1000000
sh-3.2$ sage -python
Python 2.6.4 (r264:75706, Jun 27 2010, 16:50:30)
[GCC 4.1.2 20080704 (Red Hat 4.1.2-48)] on linux2
Type "help", "copyright", "credits" or "license" for more information.
>>> import os
>>> os.system("ulimit -v")
1000000
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