Next problem:
>>> a = "привет"
>>> a.title()
'\xd0\xbf\xd1\x80\xd0\xb8\xd0\xb2\xd0\xb5\xd1\x82'
>>> print(a.title())
привет
>>> from string import capwords
>>> capwords(a)
'\xd0\xbf\xd1\x80\xd0\xb8\xd0\xb2\xd0\xb5\xd1\x82'
>>> print(capwords(a))
привет
>>> print(a.capitalize())
привет
With latin no problem, all works. I am working in Windows 7 now. I think in Linux this is not a problem.
Try this:
>>> print u"привет".capitalize() #call the method on the unicode object
Привет
>>> a = "привет"
>>> print a.decode('utf-8').capitalize() #decode str to unicode
Привет