Funny thing is, as soon as I saw OP's solution I fired up IPython to do the same thing in Python. :)

Admittedly mine was not as elegant as I haven't thought of using izip with 3 iterables. Still, I don't think that lambda and islice is really needed... xrange(100) guarantees a finite number of iterations already.

   from itertools import *
   fizzer = cycle(['Fizz','',''])
   buzzer = cycle(['Buzz','','','',''])
   fizzbuzzer = izip(xrange(100), fizzer, buzzer)
   for f in fizzbuzzer:
       print f[1] + f[2] if f[1] or f[2] else f[0]

EDIT: the output from your version does not look right. "Fizz" and "Buzz" are on the wrong index positions. 0 1 fizz 3 buzz fizz 6 7 fizz buzz ...