andcc #%01111111 ;clear S-bit stop
To get into wait mode, you just use the assembly instruction:
WAI
or in C, you would do this:
asm WAI;
It's intended to be used with interrupts because the instruction stacks all of the registers for you. It reduces the interrupt latency since when the interrupt arrives, the CPU has already stacked everything and it can go directly to the ISR. The CPU clock stops so wait mode also saves some power. Any interrupt that is configured and unmasked will automatically start the CPU going again and the RTI instruction at the end of the ISR will re-balance the stack.