diff --git a/gunicorn/app/pasterapp.py b/gunicorn/app/pasterapp.py
index cd4b1ac2..14eedd66 100644
--- a/gunicorn/app/pasterapp.py
+++ b/gunicorn/app/pasterapp.py
@@ -47,7 +47,12 @@ class PasterApplication(Application):
         cfg['workers'] = int(lc.get('workers', 1))
         cfg['umask'] = int(lc.get('umask', 0))
         cfg['default_proc_name'] = gc.get('__file__')
-        
+
+        for k, v in gc.items():
+            if k not in self.cfg.settings:
+                continue
+            cfg[k] = v
+
         for k, v in lc.items():
             if k not in self.cfg.settings:
                 continue
@@ -81,7 +86,7 @@ class PasterServerApplication(Application):
         for k, v in list(cfg.items()):
             if k.lower() in self.cfg.settings and v is not None:
                 self.cfg.set(k.lower(), v)
-            
+
         self.configure_logging()
 
     def load(self):
@@ -109,4 +114,4 @@ def paste_server(app, gcfg=None, host="127.0.0.1", port=None, *args, **kwargs):
     
     """
     from gunicorn.app.pasterapp import PasterServerApplication
-    PasterServerApplication(app, gcfg=gcfg, host=host, port=port, *args, **kwargs).run()
\ No newline at end of file
+    PasterServerApplication(app, gcfg=gcfg, host=host, port=port, *args, **kwargs).run()
diff --git a/gunicorn/arbiter.py b/gunicorn/arbiter.py
index 8ff5740d..5a87f640 100644
--- a/gunicorn/arbiter.py
+++ b/gunicorn/arbiter.py
@@ -89,7 +89,10 @@ class Arbiter(object):
         self.worker_class = self.cfg.worker_class
         
         if self.cfg.preload_app:
-            self.app.wsgi()
+            if not self.cfg.debug:
+                self.app.wsgi()
+            else:
+                self.log.warning("debug mode: app isn't preloaded.")
 
     def start(self):
         """\
diff --git a/gunicorn/config.py b/gunicorn/config.py
index 43a84d85..1a7f4afd 100644
--- a/gunicorn/config.py
+++ b/gunicorn/config.py
@@ -72,8 +72,6 @@ class Config(object):
 
     @property   
     def workers(self):
-        if self.settings['debug'].get():
-            return 1
         return self.settings['workers'].get()
 
     @property