Without building temporary lists:
>>> import itertools
>>> s = 'abcdefgh'
>>> si = iter(s)
>>> [''.join(each) for each in itertools.izip(si, si)]
['ab', 'cd', 'ef', 'gh']
or:
>>> import itertools
>>> s = 'abcdefgh'
>>> si = iter(s)
>>> map(''.join, itertools.izip(si, si))
['ab', 'cd', 'ef', 'gh']