After using processor expert for quite sometime and being used to the high productivity realised, it seemed a bit difficult to have x-gate support for one of my projects, without using processor expert. Remember, when you enable x-gate on your project, the option for using processor expert is not available.
Through some tweaking and asking questions to the support technicians at freescale, I have formulated a procedure that will alow you to have x-gate support with the processor expert feature available.
The trick is to configure a project without x-gate support initially thereby allowing you to use processor expert. At a later stage you add the x-gate support. The steps that you will need to follow thereby is given in the attached file.
Hope this works for your projects. If you face any difficulties then please post your question here.