OK, let's move to your updated question.
First, you should pass Ajax data property in string representation. Then, since you mix dataType and contentType properties, change dataType value to "json":
$.ajax({
url: "saveList.py",
type: "post",
data: JSON.stringify({'param':{"hello":"world"}}),
dataType: "json",
success: function(response) {
alert(response);
}
});
Finally, modify your code a bit to work with JSON request as follows:
#!/usr/bin/python
import sys, json
result = {'success':'true','message':'The Command Completed Successfully'};
myjson = json.load(sys.stdin)
# Do something with 'myjson' object
print 'Content-Type: application/json
'
print json.dumps(result) # or "json.dump(result, sys.stdout)"
As a result, in the success handler of Ajax request you will receive object with success and message properties.
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