I'm having issues implementing AN2295 over with K70. One of them is apparently the hc08sprg.exe does not talk protocol 9 which is defined in a target?

When i hardcode it to use protocol 8 I get same a message saying "Can't read MCU info. Could be protocol error" If I open a terminal and type in "I" I get the following:

so the mcu is talking and available. Is there a something I'm missing in the configuration of the target?
Yes, I'm using the latest app source code I was able to find, stamped with Date Modified 10/12/2012