(Abridged) We study dissipative inflation in the regime where the dissipative
term takes a specific form, \Gamma=\Gamma(\phi), analyzing two models in the
weak and strong dissipative regimes with a SUSY breaking potential. After
developing intuition about the predictions from these models through analytic
approximations, we compute the predicted cosmological observables through full
numerical evolution of the equations of motion, relating the mass scale and
scale of dissipation to the characteristic amplitude and shape of the
primordial power spectrum. We then use Markov Chain Monte Carlo techniques to
constrain a subset of the models with cosmological data from the cosmic
microwave background (WMAP three-year data) and large scale structure (SDSS
Luminous Red Galaxy power spectrum). We find that the posterior distributions
of the dissipative parameters are highly non-Gaussian and their allowed ranges
agree well with the expectations obtained using analytic approximations. In the
weak regime, only the mass scale is tightly constrained; conversely, in the
strong regime, only the dissipative coefficient is tightly constrained. A lower
limit is seen on the inflation scale: a sub-Planckian inflaton is disfavoured
by the data. In both weak and strong regimes, we reconstruct the limits on the
primordial power spectrum and show that these models prefer a {\it red}
spectrum, with no significant running of the index. We calculate the reheat
temperature and show that the gravitino problem can be overcome with large
dissipation, which in turn leads to large levels of non-Gaussianity: if
dissipative inflation is to evade the gravitino problem, the predicted level of
non-Gaussianity might be seen by the Planck satellite.Comment: 14 pages, 9 figures, Accepted by JCAP without text changes,
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