Ok, following steps.
First issue is codewarrior keeps giving me the following error after I close it, restart it, and then choose the workspace.

Now, once I reinstall CW for the 3rd time I proceed to follow your instructions.
The project would not find my vmlinux, even after copying it to the debug_linux folder. This is because the vmlinux in the project had an absolute path to its location on ypingwang's machine. I changed the properties of the the vmlinux file in the Project Explorer tab to point to my vmlinux file.

Then I connected to the target with uboot stopped at its prompt.

I see the following error in the debug console (see picture below). Seems like it is not going to work.
I add the breakpoint and hit resume. At this point uboot is frozen and I cannot launch the kernel

Sorry, but I seem to be at the same spot I was before. Am I missing something?