(Please avoid reopening old threads, as chances are high your reply will be missed. Thread split from a previous discussion here)
Anthony,
You are correct; the connection named Texas Instruments XDS2xx USB Emulator requires a full license. Are you able to connect to your board using the Texas Instruments XDS2xx USB Onboard Emulator connection despite what the Test Connection button says? If you can, it is possible there is a bug there.
Regards,
Rafael