I was spanked as a kid by my mother, and there was no lasting damage, either physical or psychological. In fact, I was more psychologically damaged from the bullying I endured in middle school than the spanking I received when I was being (for lack of a better term despite the fact I absolutely hate this word) naughty. And I have no problems in having the same done to my kids if I ever have them. The actual spanking I would leave to my wife -she would be the disciplinarian in the household.
It's not always about psychological damage. I just find that improper discipline (or lack thereof) techniques can make kids into monsters.
Well this is hardly an argument against corporal punishment -of course, if you over-discipline (i.e. physically abuse) or spoil kids rotten, you will not have happy results. That's common knowledge. Every parent has to struggle with trying to find that precarious balance between these two unpleasant extremes.