That is what I thought too. I start codwarrior, the pod is attached to my system and I go to the tools menu as usual.
I load the settings and try to erase flash. It downloads the flash program, says running and about 2 seconds later the board resets (I hear the power relay click) and my initialize led flashes and it goes to system clock checking and stays there forever.
If I hit cancel and then erase again it says erasing, resets again in about 2 seconds and stays at erasing forever.
This can be repeated for 4 or 5 times and then codewarrior locks up and I have to kill it and restart.
I thought with the debug pod on all of the stuff like the watch was disabled.