I have written many Python scripts using ArcPy in ArcGISArcMap 10, and so far my only means of debugging is restricted to printing messages to the geoprocessing results window using arcpy.AddMessage()
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Are there any other options out there, such as setting break points?
Jason's method works great. If you have a bug in your toolbox, such as validation, your IDE probably won't be able to pinpoint the problem because toolboxes are encoded. At least WING wasn't able to pinpoint it.