Hello
I assume you are debugging on the simulator?
If you are debugging on the simulator make sure to specify 9HCS12C32 as derivative.
Then you need to configure the Terminal as follows:
Virtual SCI Input Port should be set to "Sci:2.SerialOutput"
Virtual SCI Output Port should be set to "Sci:2.SerialInput"
Then close the "Configure Terminal Connection" dialog clicking on OK
Finally select File -> "Save Configuration" to save the terminal settings.
This should be working then.
CrasyCat