Thanks for your reply, I have updated my GDB to 6.8 now, and I have read the link you posted and I tried a little experiment.
I don't know quite what is going on, but when I first tried the debugging after updating GDB it didn't make any difference, then I tried doing a clean build, and it still didn't work. Then I tried making dummy class which then worked, even from the constructor. I then removed it and suddenly it was stopping at my break points Oo
Other thing I tried changing was explicit inclusion of all the header files my main source file, and i cant seem to replicate it not stopping at the break points any more, which is a good thing, unless it happens again

Thanks for your help!