03.6.py

#!/usr/bin/python2
# coding: utf-8

from PIL import Image
from urllib import urlopen
from StringIO import StringIO

chars = r'#@%MI=-*:,.'

# opens the image from desired url (here - flag of Wales)
img = Image.open(StringIO(urlopen("http://upload.wikimedia.org/wikipedia/commons/thumb/5/59/Flag_of_Wales_2.svg/1000px-Flag_of_Wales_2.svg.png").read()))
w, h = img.size

# resizes the image to make it fit into the terminal
newW = 80 # 80 is the default terminal's width; you can change that value to make the the result bigger and nicer
newH = int(0.5 * (h * newW) / w) # the 0.5 is there because character in the terminal is higher than wider
img = img.resize((newW, newH))

img = img.convert('L') # converts the image to grayscale
text = ''.join( chars[pixel / 25] for pixel in img.getdata()) # turns the image into ascii characters depending on the level of luminosity of every pixel [0, 10]

# prints the text with correct line breaking
for i in xrange(newH):
    print text[i*newW : (i+1)*newW]