I just upgraded to the App Engine 1.7.6 SDK for my python app and realised that breakpoints no longer work in PyDev (Eclipse plugin) when using the new dev_appserver.p
dev_appserver.p
Do you mean pdb.set_trace() isn't working?
Look for the function MonkeyPatchPdb() in google/appengine/tools/dev_appserver.py
Run that somewehere in your own project before you use pdb and it should fix it.