Take the subset of the sequence space with sup norm, \ell^\infty, such that x_n belongs to [1 - 1/n,1] for all n. Does this form a compact set with respect to the norm topology?
Yes, in this example the topology on the product coincides with the product topology (as the diameters go to $0$). And a product of compact spaces is compact.
Using a diagonal extraction, you can also prove it by hand: extract a converging subsequence of any sequence in this set.
If one shifts this set by vector (-1,-1,-1, ...) then one becomes the set A of those vectors x=(x1,x2,...) that xn belongs to [-1/n, 0] for all n. This A is in fact a subset of c0 and satisfies the criterion of compactness in this space (it is closed and is majorated in modulus by an element from c0). Since c0 is a subspace of \ell^\infty, the set is compact in \ell^\infty as well. The shift is an isometry, so it preserves compactness.
In a Banach space $X$, a set $K$ is compact if it is closed and bounded and for every $r>0$ there exists a finite dimensional subspace $F$ (which may depend upon $r$) such that $K\subseteq F + r B_X$. In this case one may take $F_n$ to be the subspace where only the first $n$ coordinates are/maybe nonzero and $K$ is the translated set described by V. Kadets above.