You can find RhoLog.txt (and the sqlite DB) that rhodes uses in "-/Library/Application Support/iPhone Simulator/User/Applications". In this directory you may see several directories that are long hexadecimal strings. These correspond to the different applications you have installed in your simulator. Most likely you will just have one. Change into that directory (cd) and then cd to the Documents subdirectory. In there, you should file RhoLog.txt. You can watch this file with tail -f RhoLog.txt while the application is running.
You can also reset the simulator to a clean state using Reset Content and Settings... from the iPhone Simulator menu if things go wrong and you want to start over again.
The log provides a lot of useful information by default. You can also put statements, such as "p @product", in your controller to diagnose issues you may run into.
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