Hi Pete,
I've done it Erich's way and it works but I've found it to be really cumbersome. Processor Expert is really slow to build on some architectures and as far as I can tell you can't tie PEx configurations to build configurations, so you have to change one when you change the other.
For development, when you're switching very rarely, it's probably fine. For maintaining parallel builds, I've found it to be a real pain. I've got one major project that has both a ColdFire version and a Kinetis version with thousands of deployed devices that need to be maintained. I use a single workspace with separate projects for each. Most of the code is in a shared folder referenced by both projects (well, four projects now counting stuff under development) and only the hardware-specific stuff is kept in the individual projects.
Of course, with that setup I have to maintain all of the PEx settings separately. The ColdFire and Kinetis PEx components are so different, though, that there's no sharing settings between them. They often have very different interfaces, too. For very similar parts that's probably not a big deal, but when you do run into something that PEx doesn't want to do, it can be a huge pain.
Scott