C:\>python -i -u
Python 2.2.2 (#37, Oct 14 2002, 17:02:34) [MSC 32 bit
(Intel)] on win32
Type "help", "copyright", "credits" or "license" for
more information.
>>> print 1
  File "<stdin>", line 1
    print 1
           ^
SyntaxError: invalid syntax
>>>

...and this behaviour continues, no mater what
statement you enter.

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Why do you call this a bug?  -u forces stdin into binary mode, 
and the Python grammar does not allow \r\n line endings in 
program text (it never has, BTW).  Program text has to come 
from a file opened in text mode on Windows, and what you're 
seeing here is the same as what you'd see if you did

f = open('some_python_program.py', 'rb')
exec f.read()

on Windows.

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-u     : unbuffered binary stdout and stderr (also
PYTHONUNBUFFERED=x)

Hmmm... never noticed the binary bit before. 
Is there any way to get unbuffered output without it being
binary?

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The only way on Windows is to open a file yourself in text 
mode with buffer size 0, and either write to it directly, or 
set sys.stdout to it.

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OK :-)