I remember watching a jquery demo by John Resig. He had a browser application that reloaded live while he was coding. I think he did not even have to save his code changes for this to happen ( see 3:40 in the video ).
This is the video: http://vimeo.com/116991
I find this really cool and think this can be really useful and fun while you are coding.
Do you know what application he was using? Do you know how this is done or might be done?
Update: This was suggested by Januz:
You could use XRefresh. It reloads everytime you save a file in your project's folder.
Seems to work fine.