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The range function needs an actual integer, not a symbolic expression with an additional attribute assigned by the assume function. Is there a reason you need to be working with symbolic expressions at all instead of Python functions? Consider the following:

def pc(p,W):
    return 1-(1-p)^W
def prc(p,M,W,C):
    return 1 - sum(binomial(M,i)*pc(p,W)^i*(1-pc(p,W))^(M-i) for i in range(C))
def pcol(p,N,M,W,C):
    return 1 - (1-prc(p,M,W,C))^N

These are Python functions, so you don't need to declare the variables. The return expressions will be evaluated when you supply actual numbers for the arguments (as is done by the plot function). One difference is that

print pcol

will return

<function pcol at 0x4325500>

instead of a symbolic expression indicating the arithmetic the function performs. But I don't see why this would matter if you just want to plot a graph. On that note, to plot the graph you just need to declare the variable that you're plotting:

var('p')
plot(pcol(p/2.0^33,2^20,2^10,8,1),p,0,1000)