A nice article at IBM discusses how Paper prototyping can be a useful usability testing method and describes how it can help you sidestep problems before you write your code.

An exellent point made in the article is:

A polished-looking design can actually encourage the wrong kind of feedback. If you’re trying to make sure you’ve got the right content and functionality, you may not want to hear comments like, “Hey, those fields don’t line up,” or “I don’t like that shade of green.” Paper prototypes avoid that kind of feedback because it’s obvious to users that you haven’t specified the look yet. This encourages users to focus on the concepts and functionality.

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