Dear All,
Just having a play with KDS.
For those interested in using USBDM + KDS it appears to be quite straightforward.
Since KDS is based on a relatively lightly modified Eclipse (compared to Codewarrior 10) it is possible to just treat it as a basic Eclipse install as far as USBDM is concerned.
Just install USBDM as usual but select the Eclipse CDT Plugins installation:


Then browse to the eclipse subdirectory within the KDS installation directory:


Complete the installation.
After installing you will need to configure USBDM in Kinetis Design Studio (Eclipse):


Select the Browse button to locate the ARM tools that USBDM needs. This can be pointed at the ARM-GCC installation included in KDS.




You can use your usual KDS projects but now can create a USBDM launch configuration.


For more details on this see Launch Configuration Settings this link:
USBDM: Eclipse - New Project Wizard
An added bonus is that you also gain a Kinetis peripheral register viewer:


bye
PS. One further feature - If you install Codesourcery for Coldfire you can also develop and debug code for Coldfire devices in KDS. A bit of an unexpected feature .