In the current stable version, mixed spaces are constructed at the element level:
from dolfin import *
mesh = IntervalMesh(99,0,1.)
# Old:
#V = FunctionSpace(mesh, "CG", 1)
#M = V*V
# Current equivalent:
VE = FiniteElement("CG",mesh.ufl_cell(),1)
ME = MixedElement([VE,VE])
# Alternative to calling MixedElement constructor:
#ME = VE*VE
M = FunctionSpace(mesh,ME)