As per the instructions at
http://msdn2.microsoft.com/en-us/library/cskzh7h6.aspx I've performed the
following

a) Created a system environment variable DEVPATH set to m:\debug.
b) Added the following to the machine.config for .NET 1.1

   <runtime>
       <developmentMode developerInstallation="true"/>
   </runtime>

When I debug an unmanaged application using a CCW to create a .NET component
the output from fusion binding log viewer is shown below. However I didn't
expect the entry "DEVPATH is not set. Falling through to regular bind.", any
ideas?

The operation failed.
Bind result: hr = 0x80070002. The system cannot find the file specified.

Assembly manager loaded from:
C:\WINDOWS\Microsoft.NET\Framework\v1.1.4322\fusion.dll
Running under executable  K:\Development\notification
administrator\Debug\Notification.exe
--- A detailed error log follows.

=== Pre-bind state information ===
LOG: DisplayName = Tranmit.Sprinter.Interop, Version=1.0.6.0,
Culture=neutral, PublicKeyToken=a7e947bc8958e994
(Fully-specified)
LOG: Appbase = K:\Development\notification administrator\Debug\
LOG: Initial PrivatePath = NULL
LOG: Dynamic Base = NULL
LOG: Cache Base = NULL
LOG: AppName = NULL
Calling assembly : (Unknown).
===

LOG: Processing DEVPATH.
LOG: DEVPATH is not set. Falling through to regular bind.
LOG: Attempting application configuration file download.
LOG: Download of application configuration file was attempted from
file:///K:/Development/notification
administrator/Debug/Notification.exe.config.
LOG: Found application configuration file (K:\Development\notification
administrator\Debug\Notification.exe.config).
LOG: Publisher policy file is not found.
LOG: Host configuration file not found.
LOG: Using machine configuration file from
C:\WINDOWS\Microsoft.NET\Framework\v1.1.4322\config\machine.config.
LOG: Post-policy reference: Tranmit.Sprinter.Interop, Version=1.0.6.0,
Culture=neutral, PublicKeyToken=a7e947bc8958e994
LOG: Cache Lookup was unsuccessful.
LOG: Attempting download of new URL file:///K:/Development/notification
administrator/Debug/Tranmit.Sprinter.Interop.DLL.
LOG: Attempting download of new URL file:///K:/Development/notification
administrator/Debug/Tranmit.Sprinter.Interop/Tranmit.Sprinter.Interop.DLL.
LOG: Attempting download of new URL file:///K:/Development/notification
administrator/Debug/Tranmit.Sprinter.Interop.EXE.
LOG: Attempting download of new URL file:///K:/Development/notification
administrator/Debug/Tranmit.Sprinter.Interop/Tranmit.Sprinter.Interop.EXE.
LOG: All probing URLs attempted and failed.