Found more issues. If you have a backends.xml in your project then logging stops working for your local server.
Also with backends.xml, you don't see the last log line, stating that the server is running. INFO: The server is running at http://localhost:8888/ -- You received this message because you are subscribed to the Google Groups "Google App Engine for Java" group. To post to this group, send email to google-appengine-java@googlegroups.com. To unsubscribe from this group, send email to google-appengine-java+unsubscr...@googlegroups.com. For more options, visit this group at http://groups.google.com/group/google-appengine-java?hl=en.