No, this is the debugger that interfaces with the chip (BDM), not the simulator. But suprisingly, it's somehow being helpful this time.
And sorry, i should have included the information on this earlier. It is a MC9S08DZ60 (32 pin) processor attached to the EVB9S08DZ60 evaluation board (which doesnt support 32 pins, so the reset and BKG pins are connected via wires, and a seperate power supply is being used, and nothing else is connected).
The clock is whatever is internal to the processor..
I took the settings for the SCI from the SCI example code for the evaluation board, but changed the baud rate.