fixed by reinstalling python-gtk2
** Changed in: python2.6 (Ubuntu)
Status: New => Invalid
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python 2.6.5 broken in Lucid: non ascii char in __init__.py
https://bugs.launchpad.net/bugs/606584
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Fixed by removing python-gtk2, and reinstalling ubuntu-desktop.
A hint on the cause of the error may be related to the installation of
buggy 3rd party app, or the existence of another python install that
would clash with various system paths.
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python 2.6.5 broken in Lucid: non ascii char in __