PIRXX
A Python InteRface to Xerces and Xalan, integrating it into PyXML. [Open Source, Python license]

XIST
A DOM parser (built on top of SAX2) with a very simple and pythonesque tree API and conversion methods ("object-oriented XSL"), for example for creating HTML. [Open-Source, Python license]

maki
An attempt to glue together a simple, flexible framework that allows you to use XML, XSLT, Apache, and Python to serve web pages. [Open Source, GPL]

Pyana
A extension module that allows Python programs to interface with the Apache Software Foundation's Xalan XSLT transformation engine. [Open Source, BSD-like]

PySablot
Python bindings for Sablotron (a XSLT library) providing a simple API for in-memory XSLT transformations or file-to-file transformation. [Open Source, GPL]

PyTREX
A Python implementation of TREX, an XML schema language. [Open Source, BSD-like]

Python/XML Libraries
A collection of libraries to process XML with Python. [Open Source, Python license]

wctpxml-python
A Python module that uses WCTP to send XML forms over HTTP. [Open Source, BSD-like]

jaxml
Module for quick generation of XML (and HTML) documents with a stream-based approach. [Open Source, GPL]

Redfoot
A framework for distributed RDF-based applications, written in Python. [Open Source, BSD-like]

4Suite XML Tools
A collection of Python tools for XML processing and object database management: they handle XML parsing, XPath expressions, XPointer, XSLT transformations, XLink, RDF and ODMG object databases. [Open Source, BSD-like]

SIG for XML Processing in Python
While Python includes basic XML processing capabilities, the goal of this SIG is to make Python become the premier language for XML processing. The SIG, through the mailing list and the PyXML project hosted on SourceForge, is helping to decide what software is required for this purpose, and coordinate its implementation and documentation.

xmlproc
An XML parser written in Python. It is a nearly complete validating parser with SGML Open Catalogs and XCatalog 0.1 support, SAX drivers and additional utilities.