How the term ‘computer bug’ was coined.
omg-facts.com
omg-facts.com
I suspect the usage originated with the metaphor of "ironing the bugs out" of something, which is presumably a reference to ironing some sort of bugs out of clothing.
I don't know if "ironing the bugs out" comes from something similar. But that's what the phrase in your remarks made me think of.
(It's a little ambiguous as to whether or not it refers to actual bugs, but I think the surrounding context makes it unlikely.)
There's also a great reference in a 1915 issue of Automotive Industries:
"Harry Grant drove some of the bugs out of his six-cylinder motor since last week when his best time was 91 miles per hour and covered a lap at a 96-mile an hour clip this afternoon. Haupt's Duesenberg has more speed than it had last ..."
Which you can kinda see at: http://books.google.com/books?ei=1mZGTaePHoW0sAPl4t2vCg&... but Google's restrictions prevent the actual quote from being viewed in context.