Hi Jil,
Glad you liked the project. At first i would like to say that my TWR-K60N512-KIT is a Rev D board. So, some configs could be different.
The "// POS 4 = Enable SD card on the TWR-K60N512" comment was just to i remember that position 4 of SW1 from TWR-LCD must be OFF to enable the SD card function. But i think this is just true for Rev D boards. Normal jumper configuration to Rev C is indicated to be:
// POS: 1 2 3 4 5 6 7 8
// FLEX: 1 0 1 1 1 1 1 0
This could be the right setup for you (i really don't know). Yet, i think that you must turn on all the switchs from SW5 in order to route the touch panel info to the K60 AD/s.
And the rest of the demo is working? (USB CDC class, acelerometer, touch sensing, etc)
Best regards,
Gustavo