I've run into a rather annoying issue that is preventing from running any GWT projects (including unmodified wizard generate projects). Any project I try to run in hosted mode only generates HTTP 400 errors; I have turned all logging levels up as high as the will go and get the same output I would expect if everything was working fine. There is no additional information in any of the response headers and if I deploy the war to tomcat on our development server it works flawlessly.
My co-worker is working with an almost identical setup (same version of eclipse, jre, jdk, gwt packages, identical java libraries and the same version of windows) and has not had a single problem. Googling has turned up almost nothing, the only thing I have found is a message on the gwt mailing list that was the result of an errant exclamation point in the gwt-sdk path which I have already checked for.
UPDATE: After some experimenting it appears this is only an issue when accessing jetty via the loopback address. It works fine when I access from any address other than 127.0.0.1. I have redirected the log output from the development console as igro suggested and am getting log messages that indicate that there is no problem.