praveen -
I'm trying to work through a similar problem here. I haven't been able to spend the time to completely investigate my problem, but here are some observations that might help you.
Peg's hint about the trim value is helpful. The trim value of $00 that the P&E tool is calculating is really wrong. It is likely that the internal oscillator will not actually run with the $00 loaded into the TRIM register. This is why you get the error 14. When the S8P stuffs the the TRIM register with zeroes, the oscillator quits and the rest of the file can't run.
This error in calculating the trim has to be due to the tool not reading the sync pulse properly. In my case, I have found that adding 10K external pull-ups to the BKGD pin and the reset pin solve my problem. (You are not supposed to have to use external pull-ups. I'm working on debugging a new S08 and this is probably only a workaround for some other problem specific to the new device. I found this workaround and kept working on other tasks, so I have not gone back to find the root cause yet.)
I'm not suggesting that this is the solution for your case. However, you should look at your circuit and make sure that there is not something on the BKGD pin that may be interferring with the P&E tool calculating the correct trim value.
- Rocky