I use a test setup with Webdriver and TestNG in Eclipse using java client. Earlier when i was using Selenium 1 in this same setup, it was giving a very descriptive line by line run-info which made it very easy to trouble shoot. Is there any way to get this activated in webdriver ?
LogDriver listener = new LogDriver(); driver = new EventFiringWebDriver(new FirefoxDriver(profile)).register(listener);
where LogDriver should be your own class implementing WebDriverEventListener.
WebDriverEventListener methods are fired every time you use WebDriver action like findElement or click. Therefore you can put there a couple of System.out.printlns() (or something more sophisticated like appending to html file) and it should be enough for troubleshooting.
If you run the webdriver in remotewebdriver mode, you should be able to see these commands in the node terminal. Hub will be sending these commands to node terminal. Its not the best way, but works.