lines() or points() will add to the existing graph, but will not create a new window. So you'd need to do
plot(x,y1,type="l",col="red")
lines(x,y2,col="green")
They all do different things, since matplotlib uses a hierarchical order in which a figure window contains a figure which may consist of many axes. Additionally, there are functions from the pyplot interface and there are methods on the Figure class. I will discuss both cases below.
pyplot interface
pyplot is a module that collects a couple of functions that allow matplotlib to be used in a functional manner. I here assume that pyplot has been imported as import matplotlib.pyplot as plt.
In this case, there are three different commands that remove stuff:
See matplotlib.pyplot Functions:
plt.cla() clears an axes, i.e. the currently active axes in the current figure. It leaves the other axes untouched.
plt.clf() clears the entire current figure with all its axes, but leaves the window opened, such that it may be reused for other plots.
plt.close() closes a window, which will be the current window, if not specified otherwise.
Which functions suits you best depends thus on your use-case.
The close() function furthermore allows one to specify which window should be closed. The argument can either be a number or name given to a window when it was created using figure(number_or_name) or it can be a figure instance fig obtained, i.e., usingfig = figure(). If no argument is given to close(), the currently active window will be closed. Furthermore, there is the syntax close('all'), which closes all figures.
methods of the Figure class
Additionally, the Figure class provides methods for clearing figures.
I'll assume in the following that fig is an instance of a Figure:
fig.clf() clears the entire figure. This call is equivalent to plt.clf() only if fig is the current figure.
fig.clear() is a synonym for fig.clf()
Note that even del fig will not close the associated figure window. As far as I know the only way to close a figure window is using plt.close(fig) as described above.
Best Solution
You have few choices, you can write your own control, that will process data and render it. For more complicated plots, that can be a bit complicated, but the basics are always the same, setting X and Y values ranges and then just draw a line using GDI going from left to right, nothing fancy.
As this can get a bit complicated for more advanced features, you could use some charting controls, I'd read this post or check codeproject.com, I remember, that I saw few attempts to write some decent charting controls, which are open source, new articles will probably be coded in WPF, but you should find something older as well.
Edit:
Some links that you can find useful: Graph plotting lib that's main goal is to simulate ECG or another graph plotting lib