Ok, so almost everything has already been stated, but two of my absolute favorites have yet to be: Python Pocket Reference (Third Edition is the most recent as of this post) by O'Reilly, and the Python Challenge. I have to also throw a vote in support of the wonderful Dive Into Python which everyone I know who has learned python adores, and the almighty iPython.
Honestly I could never fully stomach the giant tome which is O'Reilly's Programming Python though others I know have said good things about it. And though some people (like bruceatk proves) find Learning Python a good way to, well, learn python, but I could never really get engaged by it.
Here is where my two cents come into play. The Python Pocket Reference is a wonderful offline guide for all the builtin python functionality and a good bit of the core modules. And the damn thing is small enough to slide in a back pocket to boot (thus the Pocket Reference part I guess...). And since I like riddles & logic puzzles, the Python Challenge was a great way to get me engaged. These coupled with comp.lang.python, Dive Into Python, and the #python channel on irc.freenode.net, really got me started.
One last note on The Python Challenge. You mention "The Best Problem Domain" to get familiar with python using.... The Python Challenge is a very well done way of introducing programmers to the plethora of python modules. It shows you everything from pickle to basic image manipulation.
I hope this is of some help. (Oh, and one last resource, it's called StackOverflow).