I've uploaded a simple example of how to use OpenGL with PyGame. It's a listing from my forthcoming book, Beginning Game Development with Python and PyGame, and demonstrates how to initialize OpenGL, create a light and draw a simple 3D 'world'. It also shows how to use the camera matrix to create a simple 'fly-cam'.

To run it you will need PyOpenGL, which you can download from the website, or from the command line if you have Easy Install (type easy_install PyOpenGL). Use the cursor keys to look around, and the Q/A keys to move forward and back. You can also press Z and X to roll the camera.

Here's a screenshot.

I'm impressed by the ease of using OpenGL with PyGame. It's a one liner to create an OpenGL display, and the OpenGL bindings work well. With good use of display lists or vertex arrays, performance can be on par with commercial games. To put it in perspective, you could render an entire 3D object in less time it takes to draw a simple 2D sprite. I hope people take advantage of it, because the 'casual games' market is huge right now, and Python could give developers a serious advantage in getting games to market quickly!

Update: I experimented with recording the demo using Fraps, which worked rather nicely - I may even consider buying it! I didn't realize it was recording audio though, or I may have chosen a different soundtrack (it recorded a portion of mp3 I was listening to). Hope nobody sues me. Here's the a video of the demo.