Thanks kef. I figured it out by following the information in {CodeWarrior for HCS12 V4.7\lib\hc12c\readme.txt} file. It was some settings issue, as you mentioned, for the assembler. The following settings worked with ansil.lib file.
-D_HCS12 -Ml -W2 -Os -F2 -NoPath
However, I still cannot get ansilf.lib to work. I need it to use IEEE64 double values. Even when I put "-Cf", it gives the wrong results, which as I understand, is swapping the higher two bytes with the lower two bytes. Is it a bug?