SD,
Please take what I'm saying with a grain of salt...I'm something of a newbie to USB myself...
The Cypress hub I'm using, the CY7C65630, is certainly capable of running at high speed. It's USB 2.0 with a single transaction translator. If you've got the EVB, you can try someone else's hub, right? When we were first bringing up the Cypress hub on our target, we had lots of fun until we got the hub chip configured correctly. But with the EVB, you can use something off-the-shelf to get it running. Cypress has an eval board for their hub.
1) Check out the 5329 device errata (MCF5329DE.PDF). There's a note (that may now be outdated) that the USB on-chip transceivers do not operate correctly in full-speed mode. It also says this was corrected on datecodes XXX0618 and higher. However, I wonder if the uCLinux code wasn't written to work around these early chips, because...
2) With a USB memory stick plugged in, I get the following on the console:
new full speed USB device using ehci and address 3
not running at top speed; connect to a high speed hub
This same message occurs when the stick is plugged directly into the 5329EVB host port, so I'm guessing this is a reflection of the 5329EVB host port's operation speed.
I'm using the 20060705 version of LTIB with Freescale's USB patches. If you're using the most recent LTIB, then your results may be completely different.
Hope this helps...
jpa