This is based on the information on http://developers.sugarcrm.com/wordpress/2008/11/25/enabling-xdebug-under-os-x-leopard/. Download xdebug 2.0.4 (or later - but this is based on the 2.0.4 build) - extract it.
Folllowing issues after update (updated 8:55 wed 19th dec)