Python 2.7: 10.999 (165975/15090)

Pypy 2.3.1: 28.496 (430000/15090)

Some interesting methods I use:

Rabin-Miller Strong Pseudoprime Test - A primality test that provides an efficient probabilistic algorithm for determining if a given number is prime

Euler's product formula - The product is over the distinct prime numbers dividing n

Euler's product formula http://upload.wikimedia.org/math/6/1/9/619a7845480ba7a8a749dc56a6de7c60.png

Code:

import math
import random

#perform a Modular exponentiation
def modular_pow(base, exponent, modulus):
    result=1
    while exponent>0:
        if exponent%2==1:
           result=(result * base)%modulus
        exponent=exponent>>1
        base=(base * base)%modulus
    return result

#Miller-Rabin primality test
def checkMillerRabin(n,k):
    if n==2: return True
    if n==1 or n%2==0: return False

    #find s and d, with d odd
    s=0
    d=n-1
    while(d%2==0):
        d/=2
        s+=1
    assert (2**s*d==n-1)

    #witness loop
    composite=1
    for i in xrange(k):
        a=random.randint(2,n-1)
        x=modular_pow(a,d,n)
        if x==1 or x==n-1: continue
        for j in xrange(s-1):
            composite=1
            x=modular_pow(x,2,n)
            if x==1: return False #is composite
            if x==n-1: 
                composite=0
                break
        if composite==1:
            return False        #is composite
    return True                 #is probably prime

def findPrimes(n):              #generate a list of primes, using the sieve of eratosthenes

    primes=(n+2)*[True]

    for i in range(2,int(math.sqrt(n))+1):
        if primes[i]==True:
            for j in range(i**2,n+1,i):
                primes[j]=False

    primes=[i for i in range(2,len(primes)-1) if primes[i]==True]
    return primes
    
def primeFactorization(n,primes):   #find the factors of a number

    factors=[]

    i=0
    while(n!=1):
        if(n%primes[i]==0):
            factors.append(primes[i])
            n/=primes[i]
        else:
            i+=1

    return factors

def phi(n,primes):
    #some useful properties
    if (checkMillerRabin(n,10)==True):      #fast prime check
        return n-1

    factors=primeFactorization(n,primes)    #prime factors
    distinctive_prime_factors=set(factors)  

    totient=n
    for f in distinctive_prime_factors:     #phi = n * sum (1 - 1/p), p is a distinctive prime factor
        totient*=(1-1.0/f);

    return totient

if __name__ == '__main__':


    s=0
    N=165975
    # N=430000
    primes=findPrimes(N)    #upper bound for the number of primes
    for i in xrange(1,N):
        s+=phi(i,primes)

    print "Sum =",s