Seems that Grails does automatically recompile my GSP pages, but not my controllers. It used to work with the previous version of Grails. Any idea what I can look for?
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Strange, I've never had a problem with this. Are you sure that your controllers are compiling correctly, no typos? I've found that it generally only takes a second or two to see a change reflected in the controllers. Domain object changes require a restart (they usually wipe your saved data) and I've found that sometimes a change to a spring managed resource (like an injected service) dont' take. But controllers and GSP pages recompile 97% of the time :)
I go between GGTS (eclipse) and the command line run-app and it almost always works for me. Are you doing any sort of caching perhaps? I'm running JDK 1.6 on Lion, grails 2.1.1
Usually you will see output telling you that a file has recompiled within a second or two of hitting save.