Python is used throughout the whole product, both server and client. AFAIK, especially the UI is written mostly in Python.

I am not an expert though, but I do follow their very interesting dev blog. A few references:

http://highscalability.com/eve-online-architecture http://www.slideshare.net/Arbow/stackless-python-in-eve

All of it, at least the last time I checked.

You used to be able to wrap the client in your own Python, execute that, and give yourself extraordinary powers (read data from any market in game, send a pop up message to any player, etc)

Inject code, teleport between systems. There was some lack of server-side validation last year, but that seems to be fixed now.

There were some larger violations/extraordinary effects possible, but you could get caught by logs then.

Yes, you can get caught by logs. That however still leaves some already existing consequences of said illegal (in terms of player-game interaction) manipulations. For example compensate expensive destroyed ships which were destroyed with use of an exploit. Also, that affects customer satisfaction and support must deal with that too.

The whole client uses python, or at least did back in 2008. Someone decompiled and released the source at one point, which allowed various exploits and easier macroing.

Everything except the graphics engine which is C++