Using a select call is shorter, and should be much more portable

import sys, select

print "You have ten seconds to answer!"

i, o, e = select.select( [sys.stdin], [], [], 10 )

if (i):
  print "You said", sys.stdin.readline().strip()
else:
  print "You said nothing!"

If you're on Unix/Linux then the select module will help you.

import sys
from select import select

print "Press any key to configure or wait 5 seconds..."
timeout = 5
rlist, wlist, xlist = select([sys.stdin], [], [], timeout)

if rlist:
    print "Config selected..."
else:
    print "Timed out..."

If you're on Windows, then look into the msvcrt module. (Note this doesn't work in IDLE, but will in cmd prompt)

import sys, time, msvcrt

timeout = 5
startTime = time.time()
inp = None

print "Press any key to configure or wait 5 seconds... "
while True:
    if msvcrt.kbhit():
        inp = msvcrt.getch()
        break
    elif time.time() - startTime > timeout:
        break

if inp:
    print "Config selected..."
else:
    print "Timed out..."

By default getch will block until you have a character input ready. If nodelay mode is True, then you will either get the character value (0-255) of the character that is ready, or you will get a -1 indicating that no character value is ready.

stdscr.nodelay(True) #Set nodelay to be True, it won't block anymore
k = stdscr.getch() #Either the next character of input, or -1

The signal.alarm function, on which @jer's recommended solution is based, is unfortunately Unix-only. If you need a cross-platform or Windows-specific solution, you can base it on threading.Timer instead, using thread.interrupt_main to send a KeyboardInterrupt to the main thread from the timer thread. I.e.:

import thread
import threading

def raw_input_with_timeout(prompt, timeout=30.0):
    print(prompt, end=' ')    
    timer = threading.Timer(timeout, thread.interrupt_main)
    astring = None
    try:
        timer.start()
        astring = input(prompt)
    except KeyboardInterrupt:
        pass
    timer.cancel()
    return astring

this will return None whether the 30 seconds time out or the user explicitly decides to hit control-C to give up on inputting anything, but it seems OK to treat the two cases in the same way (if you need to distinguish, you could use for the timer a function of your own that, before interrupting the main thread, records somewhere the fact that a timeout has happened, and in your handler for KeyboardInterrupt access that "somewhere" to discriminate which of the two cases occurred).

Edit: I could have sworn this was working but I must have been wrong -- the code above omits the obviously-needed timer.start(), and even with it I can't make it work any more. select.select would be the obvious other thing to try but it won't work on a "normal file" (including stdin) in Windows -- in Unix it works on all files, in Windows, only on sockets.

So I don't know how to do a cross-platform "raw input with timeout". A windows-specific one can be constructed with a tight loop polling msvcrt.kbhit, performing a msvcrt.getche (and checking if it's a return to indicate the output's done, in which case it breaks out of the loop, otherwise accumulates and keeps waiting) and checking the time to time out if needed. I cannot test because I have no Windows machine (they're all Macs and Linux ones), but here the untested code I would suggest:

import msvcrt
import time

def raw_input_with_timeout(prompt, timeout=30.0):
    print(prompt, end=' ')    
    finishat = time.time() + timeout
    result = []
    while True:
        if msvcrt.kbhit():
            result.append(msvcrt.getche())
            if result[-1] == '\r':   # or \n, whatever Win returns;-)
                return ''.join(result)
            time.sleep(0.1)          # just to yield to other processes/threads
        else:
            if time.time() > finishat:
                return None

The OP in a comment says he does not want to return None upon timeout, but what's the alternative? Raising an exception? Returning a different default value? Whatever alternative he wants he can clearly put it in place of my return None;-).

If you don't want to time out just because the user is typing slowly (as opposed to, not typing at all!-), you could recompute finishat after every successful character input.