OK, as you have figured out, the board has a S08 part and therefore CodeWarrior for HCS12(X) is not going to work with the board.
Have you followed the step-by-step instructions in the DEMO9S08LL16 Quick Start document? You have to install a service pack, and then the DemoLL16_Toolkit_setup executable to install the P&E utilities. All of this software should be on the DVD that came with the board.
When you plug the board into the USB cable for the first time, you should get a prompt to install new drivers. You pick the Recommended Option, which then installs the drivers that came with the CodeWarrior installation.
---Tom