I had a similar problem with AC60 and, sometimes with other S08 processors during program development. I used CW6.1 or CW6.3 and PE Multilink running on XP. I initially thought the problem was the PC and especially its speed: in fact the problem was worse with different PC.
Usually the first programming went good but it was VERY difficult to reprogram the device without falling in error principally when the programmer tried to erase the written memory. The problem seemed to become worse and worse and I was quite desperate.
I finally found the problem was some hardware I/O overload in the initial I/O port setup which was unproper and caused too much current sink/source from some pins or a power supply overload. In fact the problem was worse if the power supply was designed with small current margin. This caused the hardware to repeatedly reset by itself at turn on, making difficult to the programmer to take control of the CPU.
From then I am very careful to correctly setup all the I/O to avoid any possible overload just from the first program lines, avoiding as much as possible incorrect, even short period, I/O conflicts (output to output, output to low impedance load and so on) at the beginning of program run.
With these simple cautions, I programmed thousands of AC60 with no more problems.
Salvatore