Peoplcode trace can mean setting peoplecode trace for record peoplecode or for app engine(on execute).
For getting the trace for peoplecode(record level), need to go to options and select various levels of trace by checking what level u wat( Stack, every instruction, list the program, etc) and select the destinationfile to which the generated trace needs to be copied into.
Configuration mamager allows debug for app engine wher u can select levels of trace needed , thta is only SQL, Connect, Disconnect, Peoplecode etc.
The former two mentioned here are two tier tricks for setting the trace( App Designer level)
We can still generate trace when on three-tier( Internet).For this we need to select the peoplecode check box in the beginning from peopletools option.
We can also do this for app engine at peopletools-process scheduler- processes(select the app engine name), options tab-choose append- write - value TRACE.
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