For MPC7448 target, the CodeWarrior Debugger places a Hardware breakpoint at the exception address(0x00000700 or 0xFFF00700, depending on MSR[IP]) When the chip hit a breakpoint address, it will treat the Program exception as part of breaking handling process, it is import that a valid non-fetching instruction located at this Exception vector points, and it resides in valid memory. Also, the target code must not alter the MSR[IP] while it is running if you expect to hit a breakpoint. Please check your debug environment to meet this debug environment.
In addition, please put "writereg SP 0x0000000F" in CodeWarrior initialization file to interpret EABI stack frames. These stack frames include pointers, and if the debugger reads invalid stack frames then it will not work.