This appears to be the section of code in question:
;;; Drop down to 4MHz
; MCGC2: BDIV=0,RANGE=0,HGO=0,LP=0,EREFS=0,ERCLKEN=0,EREFSTEN=0
;CLR MCGC2 ; Set MCGC2 register
MOV #$40,MCGC2
; MCGC1: CLKS=0,RDIV=4,IREFS=1,IRCLKEN=1,IREFSTEN=0
MOV #$1E,MCGC1 ;#$26 for low #$06 for high
; MCGC3: LOLIE=0,PLLS=0,CME=0,VDIV=1
MOV #$01,MCGC3 ; Set MCGC3 register
; ### Init_FLASH init code
; FSTAT: FCBEF=0,FCCF=0,FPVIOL=1,FACCERR=1,FBLANK=0
LDA #%00110000
STA FSTAT ; Clear error flags
; FCDIV: DIVLD=0,PRDIV8=0,DIV5=1,DIV4=0,DIV3=1,DIV2=0,DIV1=0,DIV0=1
LDA #$05 ;#$45 ;#$05 is for low
STA FCDIV ; Set clock divider
It looks as if he loaded the accumulator with 0x05 and stored that value in FCDIV, but the comment shows he's setting FCDIV as 0x19. Am I interpreting this correctly?