A mathematical one, for fun
s1="abc"
s2="xyz"
lgth = len(s1)
ss = s1+s2
print ''.join(ss[i//2 + (i%2)*lgth] for i in xrange(2*lgth))
And another one:
s1="abc"
s2="xyz"
lgth = len(s1)
tu = (s1,s2)
print ''.join(tu[i%2][i//2] for i in xrange(2*lgth))
# or
print ''.join((tu[0] if i%2==0 else tu[1])[i//2] for i in xrange(2*lgth))