I d/l the NormalizationTest.txt from unicode.org, as suggested, 
then run the test as:
-----------------------------------
/source/Python-build> ./python 
../Python-2.3/Lib/test/regrtest.py -g 
test_normalization.py
test_normalization
test 
test_normalization failed -- 03F9;03F9;03F9;03A3;03A3;
1 
test failed:
    test_normalization
-----------------------------------
  If I comment out that 
line in the file, it fails further down:
-----------------------------------

test_normalization
test test_normalization failed -- 
1D2C;1D2C;1D2C;0041;0041;
1 test failed:
    
test_normalization
-----------------------------------
GNU C Library stable release version 
2.1.3, by Roland McGrath et al.
Compiled by GNU CC version 
egcs-2.91.66 19990314/Linux (egcs-1.1.2 release).
Compiled 
on a Linux 2.2.14 system on 2000-03-20.
Available 
extensions:
        GNU libio by Per Bothner
        linuxthreads-0.8 by 
Xavier Leroy
        BIND-4.9.7-REL
        libthread_db work sponsored 
by Alpha Processor Inc
        NIS(YP)/NIS+ NSS modules 0.19 by 
Thorsten Kukuk
Linux www 2.2.16 #22 Fri Jun 16 16:51:24 PDT 
2000 i586 unknown unknown GNU/Linux

  This is a slack 8.1 
box, running gcc 3.0.2.

Python version 2.3

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Can you tell what version of NormalizationTest.txt you use?
Python's module is for Unicode 3.2.

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Doh!  Guess I should have known that there would be different versions.  
Looks like I've got version 4.00.  For anyone else having this issue, the 
corrent d/l location of the NormalizationTest.txt version 3.2 is 
http://www.unicode.org/Public/3.2-Update/NormalizationTest-
3.2.0.txt.  The link provided in the tests will direct you to 4.0.  Note: I have 
not yet recompiled with 3.2.

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At the time the test was written, Unicode 3.2 was current,
so the URL was correct then. I have now updated the URL in
test_normalization.py 1.8 and 1.7.8.1.