In case anyone else struggles to use the 13$ Kinetis development board with Rowley Crossworks:
Upgrade the board's bootloader to version 1.08 using the file BOOTUPDATEAPP.SDA from PEMicro's site and follow the upgrade procedure (press reset button when you plug the board and copy this file to the virtual drive using the copy - paste commands). This only works in Windows because of a bug in earlier versions. Once you have version 1.08 (you can check this from the virtual html file that the bootloader drive presents) you can the put the development board in several useful modes:
1) Get file CMSIS-DAP_OpenSDA.S19 from Keil's site and use the same procedure as above to make the dev board a CMSIS-DAP device. This target is supported by Crossworks and will allow you full programming and debug capabilities. If you are using Linux the create a file /etc/udev/rules.d/49-frdm25z.rules with the following content:
to have the device permissions altered when you plug the board.
2) Use MSD-FRDM-KL25Z_Pemicro_v107.SDA also from PEMicro's site and make the board behave as a composite USB device. One is a mass storage device where you can just copy SREC files which are automatically programmed (works in Linux too) and the other is a CDC serial interface connected to the targets USART which can be used to exchange data with the Kinetis target.
3) Use USBDM_OpenSDA.sx from the USBDM_Linux_V4.10.4 to make the board behave as a USBDM target. This is supported by the CodeWarrior IDE and also allows you to use the board as a programmer for the Kinetis family (the original PEMicro firmware is deliberately tied to the target chip ID and cannot be used to program any other chip).