I've just posted a tutorial on this subject at AVR Freaks / Forums / Tutorials. This was a fall-out from the TV Circles / Codosome stuff that Ward and I did.
If you haven't used AVR Studio for gcc program debug, it's worth a look. You can save a lot of debug time and avoid a lot of frustration using the simulator. AVR Studio uses the WinAVR/gcc tool chain for C projects. Very nice!
-jim larson (aka Doctek)