Would you please create a new project for your target from <File> menu -> New->Bareboard project, can CodeWarrior v10.5 program with this project into your project?
If it can, please compare its debugger settings in Project Properties with your project, especially whether the initialization file and memory file are selected correctly.
I had a similar problem with the USBTAP, and after adding the tcl file location as Fiona noted and updating the memory file too, it started to work good. Try it