I am trying to write server code for my python computer and make the android phone a client. The client needs to be able to send its location as well as be able to get data from the server and should run in the background and start itself every 5 minutes or so and send location data to the server. The python side should just receive and send messages as I want to. Can you guys point me in the write direction. I would like to have a GUI for this so should I use the SL4A for the android?
You are talking about Client-Server to set the location of your client. You have to create one server which will be provide you a webservice to submit your data. 
You can you any web service like xmlrpc, soap ... to fulfill your needs. Python provide the module to develop this services.
You have to use SL4A to develop a client script which will be sending data to the server every 5 min.
Python Computer -to- Android Phone