I am using S7.0.1645, the target is a mega169 (not a Butterfly board!) and the debugger is AVR Dragon. In general, things are working OK, but I started having an odd problem. With no breakpoints set, I'll start debugging, and when I push a switch that generates a PC interrupt on PORTE, the program "breaks" in the interrupt function, even though no breakpoint is set. What is odd is that the timer2 interrupt doesn't do this, just the PCint on PORTE. It's as if the debugger still has a breakpoint set somewhere, but it is not displayed.
I tried closing the app and restarting, same result. If I disconnect the debugger and run the proto board standalone, the firmware runs normally.