One of the things I really like about django is the way the server automatically resets when you edit the project. I've recently started doing some development in twisted/cyclone.
Is there a similar way to make twistd reset automatically when a program file is changed?
You can use inotify - it enables monitoring filesystem events, such as file modification. There are also python bindings: pyinotify There are many tutorials there, my suggestion is that you implement a wrapper that starts twisted monitors you source path. When a file modification occurs you restart twisted.