You need to set the allow_reuse_address before binding. Instead of the SimpleHTTPServer run this snippet:
Handler = SimpleHTTPServer.SimpleHTTPRequestHandler
httpd = SocketServer.TCPServer(("", PORT), Handler, bind_and_activate=False)
httpd.allow_reuse_address = True
httpd.server_bind()
httpd.server_activate()
httpd.serve_forever()
This prevents the server from binding before we got a chance to set the flags.