Yes, A0 on the FLASH chips addresses 16-bit words.
The CPU provides A0 so you can program an 8-bit-wide port. For 16-bit ports you shift the addresses by one, and for 32-bit ports you shift by two (if the 32-bit chips address 32-bit words and their address pins start from zero).
> If this be the case why is there not a warning/recommendation in red capital letters that says such.
Partly because everyone knows this, sorry. They can't warn about everything that someone might get wrong.
Secondly because the Reference Manual isn't meant to detail how to USe the chip. That's what the App Notes and the Development Boards are for, and that's where this information is.
Check Figure 1 on AN2982. It shoiws A23-2 connecting to A21-0 on a 32-bit FLASH chip. Figure 2 shows A22-1 connecting to A21-0 on a 16-bit FlaSH chip.
Those App Notes are filed under the MCF5208, but you have to search every similar processor to the one you're using to find this.
Then check the development board schematics here:
http://www.freescale.com/files/32bit/doc/user_guide/M5235EVBUM.pdf?fpsp=1&WT_TYPE=Users%20Guides&WT_...
They show the proper address line connections.
What you're meant to do is to start with one of the Development Boards, get your code working on them, and then *SLAVISHLY COPY* the development board schematic.
The schematic has lots of pullup and pulldown resistors that you might miss out if you "design from scratch". Then there are lines that might need series terminators, and all the complexities of all the different power supplies and their bypassing and sequencing. Then there's the difficulty of making sure you get the "byte lane selects" the right way around. The MCF chips are big-endian (high byte is low address). So are the MPC chips, except they number the BITS from the top down! And so on.
We used the MCF5329. There are THREE or FOUR different Development Board schematics, they're all different, sometimes contradictory and some of them seem to deliberately do things the manuals say not to do.
I'd suggest you compare your schematic with the development board ones, and then seriously check every discrepancy.
Tom