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There is indeed room for improvement, however slim it may be.
Get rid of the list
import sys
highest_fibo = int(sys.argv[1])
print "1\n1"
f1 = f2 = 1
for _ in xrange(2, highest_fibo):
f1, f2 = f2, f1 + f2
print f2,
If you want to make it even simpler, there is even a function to ...