Tornado is an open source version of the scalable, non-blocking web server and tools that power FriendFeed. The FriendFeed application is written using a web framework that looks a bit like web.py or Google's webapp, but with additional tools and optimizations to take advantage of the underlying non-blocking infrastructure.
Pygments is a syntax highlighting engine written in Python. That means, it will take source code (or other markup) in a supported language and output a processed version (in different formats) containing syntax highlighting markup.