Wrong version of the API. Was using an older version mainly (only?) supporting username/password authentication.
Was using "0.6-devel" of twitter.py
Updated to 0.8.X and it works, better..
EDIT:
The API is also outdated, it doesn't support Streaming API via Twitter meaning that you'll only get important posts, i needed to get all posts on a hashtag search.
I reccomend:
SixOhSix twitter API: https://github.com/sixohsix/twitter
Easy to use, worked like a charm and gets you the result you need.