I have your editor/debugger up & running perfectly (supurb software) - but whenever I make a change to the local PHP script I have to manually upload it to the remote server else the debugging engine still uses the 'old' script,
i.e. I am watching it step through the new script a line at a time on my local machine but the actual code being executed is still the old script on the remote server.

I thought the newly edited changes would automatically upload? I cannot seem to find an option anywhere that specifically lets me.
The remote server is properly configured within PhpED, i.e. I just click 'smart upload' and its done, but I thought it used to automatically do this when I hit 'F8'

Any ideas what I'm doing wrong?

Thanks

In case of remote debugging it makes sense to edit files "in-place", through a disk share, such as Samba or Windows Share (SMB protocol). In this case whenever you save file, it will be saved on the server disk.
Fortunately, SMB protocol can be secured with ssh tunnel and it's what I use myself. See this article for details: http://www.nusphere.com/products/remote_file_ssh.htm
If you don't like SMB at all, you can google for other 3rd party network share applications. Some of them rely on ssh/sftp connectivity.