From near the beginning of the PIL Tutorial:

Once you have an instance of the Image class, you can use the methods defined by this class to process and manipulate the image. For example, let's display the image we just loaded:

     >>> im.show()

Update:

Nowadays the Image.show() method is formally documented in the Pillow fork of PIL along with an explanation of how it's implemented on different OSs.

The error regarding the file extension has been handled, you either use BMP (without the dot) or pass the output name with the extension already. Now to handle the error you need to properly modify your data in the frequency domain to be saved as an integer image, PIL is telling you that it doesn't accept float data to save as BMP.

Here is a suggestion (with other minor modifications, like using fftshift and numpy.array instead of numpy.asarray) for doing the conversion for proper visualization:

import sys
import numpy
from PIL import Image

img = Image.open(sys.argv[1]).convert('L')

im = numpy.array(img)
fft_mag = numpy.abs(numpy.fft.fftshift(numpy.fft.fft2(im)))

visual = numpy.log(fft_mag)
visual = (visual - visual.min()) / (visual.max() - visual.min())

result = Image.fromarray((visual * 255).astype(numpy.uint8))
result.save('out.bmp')