Quick question: I'm learning python with the intention of playing around with pygame in the near future. I understand that python can be used in website development, but can I build a game with python (along side pygame) and place it on a website in a similar fashion to flash games?

Not with pygame.

Panda3d uses python and has a browser plugin, but people would have to download it in order to play (which many are not very likely to do).

If you want to focus on browser games you should look for another engine, one that can create the game as a flash application or uses HTML 5.

You can build games with Python, but you can't post them on the web, as you would a Flash game.

... Well, at least not yet, but there are efforts to compile Python (and other languages) to a JavaScript subset; I'm thinking of things like Emscripten.