I have got Pydev configured properly so it runs my app, however when I want to inspect/trace my code by setting up breakpoints the debugger does not kick in (can\'t trace). Does
Ordinarily you wouldn't have to select manage.py and hit debug. From your description it sounds like you may not have set up the Django launch params in the Run/Debug settings panel.
Here are some step by step instructions:
http://pydev.blogspot.com/2006/09/configuring-pydev-to-work-with-django.html
and
http://developeradventures.blogspot.com/2008/03/eclipse-django-debugging.html
The important part is adding the entry to the Run/Debug settings. When it's time to debug, set the breakpoint, on the Eclipse toolbar click on the Debug button's drop-down arrow and select the Django project you've defined. Then from a browser window go to your Django server's URL. Eclipse should stop at the breakpoint.