If you want to talk to a python program running on the Chumby itself, you need something like:
from socket import *
policyFile = '<?xml version="1.0"?><!DOCTYPE cross-domain-policy SYSTEM "http://www.adobe.com/xml/dtds/cross-domain-policy.dtd"><!-- Policy file for xmlsocket://socks.mysite.com --><cross-domain-policy><allow-access-from domain="*" to-ports="6666" /></cross-domain-policy>'
print "waiting for connection..."
print "connection made"
print "data: ",data
if("policy-file-request" in data):
print "connection closed."
Note the weird XML. You to send that back to the Flash Player in response to a policy-file-request to assure the Player that you have the right to access that socket. After that, your ActionScript can talk freely using xmlsockets with the python program running on the Chumby.