This is the same error I encountered a little over a year ago with KDS 3.0. I never found a solution with your help. Since the project I was working on was new I started over in KDS 2.0 and everything was fine.
Now I have another project in KDS 3.2 that is very far along and has thrown the same type error:
Generator: FAILURE: Unexpected status of script: Drivers\Common\CommonRegInitialization.prg, please contact Freescale support.
Once again it is the CPU component that has caused the error:
I tried all the steps suggested last time. I also inserted another copy of the CPU Component from the library, configured it the same as the one in error, and then deleted the bad one. But after a re-compile, the error returned immediately.
So far it is not a show stopper. I just can't make any more changes to the CPU component. They get ignored and the CPU.C file does not update. This weekend I needed to enable the watchdog so I manually edited CPU.C and it worked fine.
Since this may be a PE issue is it worth getting Erich involved?