Erich,
I read your article in an attempt to debug in RAM. Unfortunately, since I'm using KDS3.2.0 and there is anything in the configuration setup that looks like the menu you showed in Processor Expert. I can't find where I can switch back and forth between RAM and Flash in this version of KDS.
Here are a few snap shots of the Build Configuration setting menu:



However, I found a checked box named "Create flash image". If this is it, then it is checked and the program should be in flash, isn't it right?
Anyway, I found something similar to your "Pre-run reset halt" in the Debug/Launch configuration. It is named as "Pre-run/Restart reset". The box is checked as default.

I attempted to uncheck it and launched my debug session. I don't see anything different in the log that follows. How do I know if it's running out of RAM or flash? The disassembly view was blank in either case.

In summary, I've got to find a way to set the build configuration to target the flash instead of RAM. And it looks like I got stuck.
By the way, I also tried to download the firmware with KinetisFlashTool through the USB channel via the ROM bootloader. The tool indicated that the image was successfully updated.
However, after a power cycle, the program never started. Could it be loaded in a wrong area of flash that the microcontroller can't retrieve it after it exits the ROM bootloader?
-Daniel