Selenium 2.0 / webdriver
The maintainers of Selenium, sort of answer this question here:http://www.viddler.com/explore/saucelabs/videos/27/Look for timestamp 00:56:00 and 00:43:00
Basically, there will probably be IDE support for Selenium 2 eventually. But it isn't there yet and it's not clear what it will look like.
You should probably be avoiding the IDE anyway. The tests that you record using the IDE tend to be fragile, unmaintainable and hard to read. Once you've learned the basics of Selenium, it's probably better to write your tests in a real programming language.
Have you seen - http://seleniumhq.org/docs/03_webdriver.html and http://seleniumhq.org/docs/04_webdriver_advanced.html
Using Selenium IDE we can format recorded code in different languages - Selenium IDE > Option > FormatBut did not see any formatter for webdriver, though bumped on to this -
https://addons.mozilla.org/en-US/firefox/addon/webdriver-backed-formatters/
Only a few minor adjustments are required to get the existing 1.0 C# scripts running under the 2.0 beta of Selenium.
Check out this blog post
Once the RTW release of Selenium is ready, I'm hoping that a better formatter is ready. Until then, I'm able to use my scripts.