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I'm a pretty new GIS programmer and I've found ArcGIS/Arcpy to be extremely unstable. I'm trying to run a Locator Report in arcpy with no success.

I'm wondering if there are any other alternatives? Are there other software packages that can accomplish the same thing but with open source code in case I encounter bugs?

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Not much; you have the ability to download the US Census/Demographics data into your own DB and them extrapolate your own report; there are outside sources of data in the US that commercially massage the data like ESRI does but for a out of the box answer like that you are really limited.

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