I have never tried it. I would just give the instructions a whirl. You can set the Java options needed in [install-dir]/bin/setenv.sh. You will need to remove the double quotes around the options. Let me know how it goes.
Couple thoughts. First, Amazon EC2 does something with capturing the console output. You can view it in the Firefox EC2 plugin. So maybe this grabbing the console output. Second, Wowza Pro uses log4j to send data to the console. Maybe the Eclipse remote debugging is not able to grab this console output (I double this is the issue but worth mentioning).
I might try adding System.out.println() statements to your code to see if those are output to Eclipse. I might also try remote debugging to a non-Amazon EC2 machine to see if this issue is specific to EC2.
I edited the setenv and it worked fine on my EC2 instance. I see all the thread running in eclipse but I don’t have the console output. Any idea about the console?
They are using the linux instance to see what’s going on in the console. Is there a way to start the Wowza service with the console displaying like they do in Red5?