The latest version of elementtree supports XPath pretty well. Not being an XPath expert I can't say for sure if the implementation is full but it has satisfied most of my needs when working in Python. I've also use lxml and PyXML and I find etree nice because it's a standard module.
NOTE: I've since found lxml and for me it's definitely the best XML lib out there for Python. It does XPath nicely as well (though again perhaps not a full implementation).