Hi,
I am using QNX Momentics IDE Version: 4.7.0, Build id: 201006232051 and running QNX 6.5.0 in the target (ARM-le).
I created a test project (QNX C Project) to see if I can step through the code with just a 'main()' and couple of 
'printf()' (I have also tried by adding function calls and eluminating printf() but with the same issue).
I had set multiple break points and I started the debugger (with verbose) and the program stopped at main() as expected.
 
Then I did 'resume', it went to the first breakpoint. 
I then did 'step over' twice and the debugger terminated with 'Illegal Instruction'. 
I am sure that it has not exited the main() function.
Seems like it has something to do with the 'libc.so.3'. I double checked to see if I loaded the correct library file 
(libc.so.3) in the target.
The following is present in /usr/lib
ldqnx.so.2 -> ../../proc/boot/libc.so.3

I have 'qconn' and network running on the board (no'inetd'). I also have serial connected (Ran it with and without the 
Terminal connected). I am able to view the 'QNX System Perspective' so I think that the 'qconn' is functional.

There is only one source file and the contents are as below. I had the first breakpoint set at the second 'printf()' 
statement and the next at the 5th printf().

#include <stdlib.h>
#include <stdio.h>

int main(int argc, char *argv[]) {
	printf("Welcome to the QNX Momentics IDE\n");
	printf("Welcome to the QNX Momentics IDE\n");
	printf("Welcome to the QNX Momentics IDE\n");
	printf("Welcome to the QNX Momentics IDE\n");
	printf("Welcome to the QNX Momentics IDE\n");
	printf("Welcome to the QNX Momentics IDE\n");
	return EXIT_SUCCESS;
}


Please help me understand what I am missing to be able to step through the code. 
Attached are logs from the console.

Thanks,
Arun