First I would like to thank Dan Vona, Avnet-Freescale FAE extraordinaire for posting my problem of "Sawtooth on Reset". I have solved the problem. The cause: When creating the project using the new project wizard, at I/O support, I selected (incorrectly) "debugger console" which enables semi-hosting. It appears as though when this is selected, one cannot undue this choice later. I tried. I had to create another project where I selected "UART" for I/O support. This fixed the problem and I am on the way to finishing the project.
What appears to have been happening is that during initialization, the failing project would get to code to initialize semi-hosting, and this caused a system reset. For some reason, it didn't fail when the j-link was hooked up with the debugger running. So the system would start, reach the semi-hosting initialization, then reset, which may be viewed on the reset pin because all system resets pull the open drain reset pin low. This is a good feature because one can use it to reset outside peripherals. In addition, one can observe that a reset is occurring.
I hope this problem and solution can help others from ripping their hair out.