Platform: OS X 10.2.8
Python 2.3 final, running PythonIDE, but I guess the bug is 
also in 2.3.2.
In the "Python Interactive" window (characters between 
acute brackets to be interpreted by humans):
>>> print "<option-v>"
<square root sign>
>>> print u"<option-v>"
<dialog opens, saying UnicodeEncodeError: ...>

That's not bad, because it cannot be printed in ASCII. 
Fine.
But now, at every CR, the dialog opens again!

The same problem when running code in an edit window; 
there you get in a state that any print command gives this 
error.

I managed to fix it, but I am not so sure this is the right 
way to do it.
I changed PyConsole.ConsoleTextWidget.flush:
There are two lines (that are not together, but can safely 
be moved together)
   self.ted.WEInsert(stuff, None, None)
   self._buf = ""
and I replaced this by
   try: self.ted.WEInsert(stuff, None, None)
   finally: self._buf = ""

The same code occurs in PyConsole.PyOutput.flush(); this 
fixes the bug in the other case.
- Jurjen

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Just, could you take a look at this?

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Fixed in CVS. Thanks for the report!