Hello Jim,
 yes, single stepping is not fast, but overall
 USBSPYDER08 is a nice little tool for evaluation.
 I have since found that in addition to what was
 described it works best if
 a) you disconnect power  from your target before
  loading (or before you hit F5 in CW) and reconnect
   target power when the spyder
 asks you to. ( turn power on and off etc).
 b)
  something seems to edit the "SofTec_RS08.ini"
  and reset the devicename back to ...KA2 or ..KA1.
 It does not seem to happen at each load
 Perhaps it is only when the loader has had problems.
 To avoid this I have made the file read-only.  Doing
 this does not seem to have ill side-effects.
Have you heard back from SofTec?
cheers,
  Peterk