Interrupt level 7 is non-maskable. You simply cannot use it in any way that sychronizes or cooperates with other code. The only place I have used it is for a watchdog timeout which forces a software reset. Even if you set the processor priority level to 7 as a way to disable interrupts, level 7 interrupts will still bust thru.
Use only levels 1-6 for normal interrupts. Note that the levels for the edge port interrutps are fixed, so use of any edge port interrupt forces some decisions about interrupt priority to the hardware layout stage.
Coldfire hardware allows interrupts at higher levels to preempt lower level ISRs (levels, not priorities within levels). With careful programming and level selection, you can construct systems that support very fast interruupt response where needed. By default, the CodeWarrior tools insert a STLDSR insttruction into each C ISR, which defeats the preemption. In my opinion, the STLDSR thing is only appropriate for unusual circumstances and should not be the default.