Hi Akash,
I am using 9S08AC16a and 9S08AC60 which are nearly identical to -AW family in different designs with internal oscillator and BusClock from 1 to 20MHz with no problems. External crystals are specified to work from 1 to 16 MHz (8MHz BusClock) but externally provided clock may be as high as 40MHz, i.e. full speed.
I had no problems to progressively increase BusClock from lower frequency ut to maximum other than on tasks which were based on (low) clock speed for delays. All minor problems, easy to fix. Performance always increased as well as you may expect with speed.
Salvatore