I looked for ideas on setting up a Magento development environment when we first started using it for our site last year. I didn't find anything that work really well, so I stayed with var_dump'ing using the log files.
Now that Magento has another year under its belt and several hundred more developers I was wondering if anyone has found a better solution for debugging Magento.
We use Eclipse as our development environment. We tried a pre-2.0 release of PDT with the Zend Debugger and didn't have much luck.