Problem: I was trying to debug in Visual Studio 2005 in my new machine which came with Vista Home Premium. Surprisingly I found that none of the break points are touched and I cannot debug. I tried giving all types of permission to the folder but no luck.
Solution: After googling a bit, I found that I needed to run VisualStudio2005 as an Administrator, and everything started working as I expected.
So all I had to do is :
Right-click the Visual Studio icon and select the "Run as administrator" option from the context menu.
Hope this saves some of your time.