Message 178596 - Python tracker
This is not a 2.7 issue only:
>>> import sys
>>> sys.version_info
(2, 6, 5, 'final', 0
>>> 'Foo {0}'.format(u'bár')
Traceback (most recent call last):
File "<stdin>", line 1, in <module>
UnicodeEncodeError: 'ascii' codec can't encode character u'\xe1' in position 1: ordinal not in range(128)
>>>