There are several options in the codecs
module in python's stdlib, depending on how you want the extended characters handled:
>>> import codecs
>>> u = u'nästy chäräctörs with å and co.'
>>> encode = codecs.get_encoder('ascii')
>>> encode(u)
'
Traceback (most recent call last):
File "<stdin>", line 1, in ?
UnicodeEncodeError: 'ascii' codec can't encode character u'\xe4' in position 1: ordinal not in range(128)
>>> encode(u, 'ignore')
('nsty chrctrs with and co.', 31)
>>> encode(u, 'replace')
('n?sty ch?r?ct?rs with ? and co.', 31)
>>> encode(u, 'xmlcharrefreplace')
('nästy chäräctörs with å and co.', 31)
>>> encode(u, 'backslashreplace')
('n\\xe4sty ch\\xe4r\\xe4ct\\xf6rs with \\xe5 and co.', 31)
Hopefully one of those will meet your needs. There's more information available in the Python codecs module documentation.