Howard Butler and Patrick Brown of Iowa State University have developed a system called avTerra which integrates the Microsoft TerraServer into ArcView GIS. Much of this application is built in Python, and is integrated into ArcView using AVPython.
Howard and Patrick brought a poster to the ESRI User Conference in San Diego, "Terraserver for ArcView GIS", and won the Map Gallery award for "Best Software Integration". Congrats Howard and Patrick! (And thanks mentioning me on your poster.)