Hi Roger,
If you mean source level debugging using the PICKit2 then yes. As far as I know MPLAB is the only tool which allows you to use a hardware debugger to debug (step, step over, set break points etc) a PBP program at the source level.

I'm sorry but I can't help you getting PBP going inside MPLAB, been there a couple of times only to leave dissapointed....

/Henrik.