Hi,
I think if you have a key number, like 65 for a, if you add 32 to it it always becomes a capital.
This has something to do with the chr and ord functions.
Hope that helps.

oo yay! I'm the first to offer a technical explanation for once. Squeeee!
OK so, here goes:
There are two types of program, GUI and command line.
command line programs are programs that run, you guessed it, in yhe command line. This is that funny window that has the name "c:\windows\bla bla bla"
A GUI program is a program that has a graphical user interface, or, a separate window, with all those wonderful buttons and key press events and stuff!

So:
raw_input(), this is a command line function. It is designed to get input from the command line, and is what is called a blocking function. This means that if you have a loop like this:
n=0
while(n<10):
if(n==5):
  print("tell me something!");
  print(raw_input())
n=n+1

the loop will run super fast until n=5, then when n=5, it will stop while it waits for the user to finish writing, and as soon as the player hits enter, it will continue.

Simulating this in an audio game, however, is difficult. Or at least, more difficult than simply writing: raw_input().

Pygame, to the best of my knowledge, has no text box or similar.
Sure, you could gut your program, move to wx python, and have a lot of trouble with sound, but why!
Pygame gives you everything you need for an audio game right there, and with only a few tweaks, we can give it our own text box.
I'm not a fan of writing peoples code for them, so the below is just seudo code, meaning, it is not real and just outlines things:
textfield=""
in_text_field=0
def key_pressed(event):
if(key is enter):
   in_text_field=2
else:
  textfield=textfield+event.letter

don't use event.letter, that's not a thing.
then, in your game loop:
if(in_text_field==1)
do nothing because we're waiting for text to be finished.
elif(in_text_field==2):
aha! we have some text, and a text box was recently closed! do something with it, such as:
speak("Mua ha ha ha ha! I know what you typed! you typed: "+textfield+". Clever!")
textfield=""
in_text_field=0

then in your pygame event loop, simply put a call to game_loop, and make sure not to include while loops in that game loop because otherwise it sticks, and besides the event loop is already a game loop.

Few! ok this got a lot more wordy than I meant it to, and the code is only seudo code, but that's the basic idea.
I'll probably end up covering something like this in my next batch of tutorials, but I hope that helps!

I could be wrong, but I think that you can use wxpython and pygame in the same project. It may require some magic though, I've not tried it as of yet.

Thank you all for your input. I'll respond to posts one by one.
@3: What are the parent, caption, and message in your function? What would I pass along to each?
@4: You kind of didn't help my problem. I had input in a way you described, but your input is limited. It will not detect capitals, the hole point of this topic. Lol
@5: I looked around on the docs for pygame, and from what memory serves, I found a function called get_mods() which returns an integer of the mod keys like shift, alt, and ctrl. Is that what you intended for me to find? If so, would I just add in the if statement checking for the shift key being pressed and appending an uppercase letter to the string if it's the case? Can that type of input raise an exception? Would it be efficient?

I had no issues mixing pygame and wxpython in my projects. All you have to do is creating the application before you show the window, and calling its MainLoop after showing the window so it works all fine. Then you can use wxpython's text entry dialog. Please note that if you are showing the game's window at fullscreen then you should remove the fullscreen flag before you call a text entry dialog and then re-add it after getting the input. It was what I did in one of my projects.

I don't see the reason to not use a tool that is already there. Sure, for learning it's fine, but why would you spend effort coding a text entry dialog that can do all the things a wx dialog can?

Here is a function that uses only Pygame and gets the input from the game window.
The downside of this approach is that you'll need to implement the cursor keys yourself, but it works with capital letters and accents.
def pygame_get_input():
    result = []
    done = False
    while not done:
        for event in pygame.event.get():
            if event.type == pygame.KEYDOWN:
                if event.key == pygame.K_BACKSPACE: # Delete letter
                    result = result[:-1]
                elif event.key == pygame.K_RETURN: # User entered all the text
                    done = True
                    break
                elif hasattr(event, "unicode"): # User tiped a letter
                    result.append(event.unicode)
        pygame.time.wait(10)
    return "".join(result)