Combining Python with LaTeX is a powerful combination. It allows for arbitrary code to be executed which either gives the results of expressions, or can be used to embed programatically certain things e.g. the paths of files or images.
By downloading python.sty and including it in a usepackage block, python code can be run.
I was having trouble getting this to work as it seems I was using an invalid version of python.sty. The version linked above works as of the date of this post
This must be compiled with latex/pdflatex and the -shell-escape option. Probably any latex compiler which supports this flag will do so probably luatex will support this, but I dont really see the point in embedding python in luatex compatible latex!
I believe any python module thats available to the system python installation can be used, so the following will print the current directory the latex was compiled in
An optional python script can be included with the compilation. A common usage is to import the modules required for the whole project, or to get some global variables