Have you gone to the MPC555 page and downloaded the RCPU reference manual? (The file name is RCPURM.pdf.) It provides an exception vector table and the meaning of various exceptions. The 0x0700 exception covers a variety of programming errors, such as:
1) Floating-point exception -- Are you doing any FP math?
2) Executing a privileged instruction -- Typically means the program got lost and is trying to execute some random data as an instruction. Have you configured and tested your interrupt handler code?
3) Trap instruction -- These can be used to manage your own exception handling or implement OS calls. Usually what's happened here is the same as in 2).
I'm not familiar with the tech note in question, but perhaps with the reference manual in hand you can sort things out. HTH.
---Tom