As indicated by the other answers, the error is to due to k = list[0:j], where your key is converted to a list. One thing you could try is reworking your code to take advantage of the split function:
# Using with ensures that the file is properly closed when you're done
with open('filename.txt', 'rb') as f:
d = {}
# Here we use readlines() to split the file into a list where each element is a line
for line in f.readlines():
# Now we split the file on `x`, since the part before the x will be
# the key and the part after the value
line = line.split('x')
# Take the line parts and strip out the spaces, assigning them to the variables
# Once you get a bit more comfortable, this works as well:
# key, value = [x.strip() for x in line]
key = line[0].strip()
value = line[1].strip()
# Now we check if the dictionary contains the key; if so, append the new value,
# and if not, make a new list that contains the current value
# (For future reference, this is a great place for a defaultdict :)
if key in d:
d[key].append(value)
else:
d[key] = [value]
print d
# {'AAA': ['111', '112'], 'AAC': ['123'], 'AAB': ['111']}
Note that if you are using Python 3.x, you'll have to make a minor adjustment to get it work properly. If you open the file with rb, you'll need to use line = line.split(b'x') (which makes sure you are splitting the byte with the proper type of string). You can also open the file using with open('filename.txt', 'rU') as f: (or even with open('filename.txt', 'r') as f:) and it should work fine.
