I know you state you’re using Python 2.6, but if you’re able to use Python 3.3 you’ll find that this is finally supported.
Use the command chcp 65001
before starting Python.
See http://docs.python.org/dev/whatsnew/3.3.html#codecs
In Python 3.6 it’s no longer even necessary to use the chcp
command, since Python bypasses the byte-level console interface entirely and uses a native Unicode interface instead. See PEP 528: Change Windows console encoding to UTF-8.
As noted in the comments by @mbom007, it’s also important to make sure the console is configured with a font that supports the characters you’re trying to display.