Right now, calls to the REST API v.1.1 can be made via
tw = twitter.Twitter(domain='api.twitter.com', api_version='1.1', auth=twitter.oauth.OAuth(access_token, access_token_secret, consumer_key, consumer_secret))
As I understand it, if you want to search for stuff, you have to do this:
tw = twitter.Twitter(domain='search.twitter.com')
This actually opens up a connection to the REST API v.1 because using this connection to search for terms returns results which are specified here: https://dev.twitter.com/docs/api/1/get/search
It seems that there is no more distinct Search API, it has been fully incorporated to the REST API as of v1.1, so something like the first code snippet should also return an object which can be used for searching. Furthermore, the search method in API v1.1 also needs authentication.
See also my question on SO: http://stackoverflow.com/questions/13998434/what-is-the-best-python-wrapper-for-the-twitter-api-1-1
Indeed, that example code is out of date. I will update the documentation to show how to use the 1.1 API for search. Thanks for the report.
Updated in 1.9.1.