I tried Readren's solution but using IntelliJ IDEA community edition (so no inbuilt Play support) instead of Eclipse.
This is basically the way it is documented to work with the new Typesafe Activator stuff (I'm using 1.3.2). For me application ran and the IntelliJ debugger looked like it was connecting but it would not hit any breakpoints (also the breakpoints in IntelliJ did not have a tick mark indicating they were not going to get hit).
I tried changing the DEBUG_OPTS setup in the activator.bat file to use the -agentlib form of the jdwp command line arguments and this seemed to fix it for me.
rem set DEBUG_OPTS=-Xdebug -Xrunjdwp:tnsport=dt_socket,server=y,suspend=n,address=!JPDA_PORT!
set DEBUG_OPTS=-agentlib:jdwp=transport=dt_socket,server=y,suspend=n,address=9999
Probably I should put this in an activatorconfig.txt somewhere but spent about 4 hours trying to get this to work - so it's good enough for me now...
I'm using the following JVM in case it matters:
java version "1.7.0_75"
Java(TM) SE Runtime Environment (build 1.7.0_75-b13)
Java HotSpot(TM) 64-Bit Server VM (build 24.75-b04, mixed mode)