>
>     # Here is the change
>     if found_it:
>         print 'Now I\'m going to change it to "pwned."'
>         i_am_global = new_val
>

Above you assign a value to i_am_global. Because you have not explicitly 
declared i_am_global as a global variable, it is automatically defined as 
being local to the main() function. Therefore, any earlier references to 
i_am_global (e.g., line 45) will generate an UnboundLocalError.

In Python, you can always read a global variable without declaring it to be 
global, but if you want to create or overwrite a global variable within a 
function, you must first declare it to be global.

Anthony


>>

-- 
Resources:
- http://web2py.com
- http://web2py.com/book (Documentation)
- http://github.com/web2py/web2py (Source code)
- https://code.google.com/p/web2py/issues/list (Report Issues)
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