"MSP430: Can't Single Step Target Program: Could not single step device"

May be this post will help:
http://e2e.ti.com/forums/t/844.aspx

Also hopefully the firmware on your USB debugger is up to date.
One thing that may be done: There is a free tool made by ELPROTRONIC (www.elprotronic.com) for the FET 430UIF. This tool also reflashes the FET430UIF if it is not the correct version to work with their software.

Despite the error, are you able to put a breakpoint somewhere in the code and run it?
I recommend the following:
1. Create a brand new project using the following to make that the project settings are correct:
https://community.ti.com/forums/t/65.aspx

2. Use a TI Target board if possible to run this test:
http://focus.ti.com/mcu/docs/mcuprodmsptoolsw.tsp?sectionId=95&tabId=1203&familyId=342&toolTypeId=1#FETkits

Well I'm sorry to say that this did not help that much... I followed the instructions and it still did not work, same problem, although I'm not using CCE v3, I use CCE v4. I have an brand new TI Target board an MSP-FET430u28. I guess I have to try out CCE v3 also since that program you liked to does not seam to work.

Hi, I have the same error. After i leave the interrupt vector it goes back to the end of GoToSleep function and pops up the error.

void GoToSleep()
{
TA0CCR0 = 5; 
TACCTL0 = CCIE; // CCR0 interrupt enabled
TACTL = TASSEL_2 + MC_1;
_BIS_SR(LPM0_bits + GIE); // Go to sleep in low power mode 0 , with interrupts enabled.
}

#pragma vector=TIMERA0_VECTOR
__interrupt void Timer_A0(void)
{
PSU_ON(); // just a function for the LEDs
CCR0 += 5; // Add Offset to CCR0
PSU_OFF(); just a function for the LEDs
}

Any suggestions what might cause the problem?

Thanks,

Vasil