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interShp = Shp1.intersect(shp2, 4)
interShp = Shp1.intersect(shp2, 4)
What you are trying to do will work with arcpy 10.0 or 10.1. But you are calling the geometry object method wrong:interShp = Shp1.intersect(shp2, 4)
Not "intersection, but "intersect." And you need the 2nd arg, the dimension of the output geometry. You said area, so that would be 4.
good luck
Mike