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Plugins are a major part of why WordPress powers millions of blogs and websites around the world. The ability to extend WordPress to meet just about any need is a powerful motivator for choosing WordPress over other alternatives. Having written several plugins myself, I've come to learn many (but certainly not all) of the ins-and-outs of WordPress plugin development, and this article is a culmination of the things I think every WordPress plugin developer should know. Oh, and keep in mind everything you see here is compatible with WordPress 3.0+.
The first thing you should do when developing a WordPress plugin is to enable debugging, and I suggest leaving it on the entire time you're writing plugin code. When things go wrong, WordPress raises warnings and error messages, but if you can’t see them then they might as well have not been raised at all. Enabling debugging also turns on WordPress notices, which is important because that's how you'll know if you're using any deprecated functions.