old_contents: import fileinput
  
  print "=================="
  print "= Python Hangman ="
  print "=================="
  
  # START main loop
  # Should be a random phrase from wordlist instead
  for phrase in fileinput.input("wordlist"):
      if len(phrase) < 1 or phrase[0] == '#':
          continue
  
      # Remove the new line character
      # and any other trailing or leading whitespace
      phrase = phrase.strip()
  
      # get unique characters into a set
      incorrect_guesses = set()
      correct_guesses = set()
      chars_in_phrase = set()
      for char in phrase:
          if char != " " and char != "-":
              chars_in_phrase.add(char.lower())
  
      max_guess = 9
      wrong_guess = 0
  
      # START inner loop
      # While wrong guesses hasn't reached max guesses 
      # and not all the characters are guessed
      while wrong_guess < max_guess and chars_in_phrase != correct_guesses:
          # Show number of guesses used out of allowed guesses
          print str(wrong_guess) + "/" + str(max_guess)
          # Print the phrase
          for char in phrase:
              # Show word separators and guessed chars as is
              if char == " " or char == "-" or char.lower() in correct_guesses:
                  print(char),
              else:
                  print("_"),
  
          # New line
          print("")
  
          inchar = raw_input("Enter character: ")
  
          if len(inchar) < 1:
              continue
  
          inchar = inchar[0].lower()
          print "You entered: %s" % inchar
  
          # Check if the character is in the phrase
          if inchar in chars_in_phrase:
              print "correct!"
              correct_guesses.add(inchar)
          elif inchar not in incorrect_guesses:
              print "incorrect!"
              wrong_guess += 1
              incorrect_guesses.add(inchar)
          else:
              print "incorrect!"
  
          print "Correct guesses: %s" % correct_guesses
          print "Incorrect guesses: %s" % incorrect_guesses
          print "Chars in phrase: %s" % chars_in_phrase
          
          # END inner loop
  
      print "Phrase: %s" % phrase
  
      # END main loop
  
new_contents: import fileinput
  
  print "=================="
  print "= Python Hangman ="
  print "=================="
  
  # START main loop
  # Should be a random phrase from wordlist instead
  for phrase in fileinput.input("wordlist"):
      if len(phrase) < 1 or phrase[0] == '#':
          continue
  
      # Remove the new line character
      # and any other trailing or leading whitespace
      phrase = phrase.strip()
  
      # get unique characters into a set
      incorrect_guesses = set()
      correct_guesses = set()
      chars_in_phrase = set()
      for char in phrase:
          if char != " " and char != "-":
              chars_in_phrase.add(char.lower())
  
      max_guess = 9
      wrong_guess = 0
  
      # START inner loop
      # While wrong guesses hasn't reached max guesses 
      # and not all the characters are guessed
      while wrong_guess < max_guess and chars_in_phrase != correct_guesses:
          # Show number of guesses used out of allowed guesses
          print "%d/%d" % (wrong_guess, max_guess)
          # Print the phrase
          for char in phrase:
              # Show word separators and guessed chars as is
              if char == " " or char == "-" or char.lower() in correct_guesses:
                  print(char),
              else:
                  print("_"),
  
          # New line
          print("")
  
          inchar = raw_input("Enter character: ")
  
          if len(inchar) < 1:
              continue
  
          inchar = inchar[0].lower()
          print "You entered: %s" % inchar
  
          # Check if the character is in the phrase
          if inchar in chars_in_phrase:
              print "correct!"
              correct_guesses.add(inchar)
          elif inchar not in incorrect_guesses:
              print "incorrect!"
              wrong_guess += 1
              incorrect_guesses.add(inchar)
          else:
              print "incorrect!"
  
          print "Correct guesses: %s" % correct_guesses
          print "Incorrect guesses: %s" % incorrect_guesses
          print "Chars in phrase: %s" % chars_in_phrase
          
          # END inner loop
  
      print "Phrase: %s" % phrase
  
      # END main loop
  
subject: Use formatted print instead of concatenation