Hi,
Whenever I have debug problems, I usually follow the sections General IDE and Debugger of the Troubleshooting page at:
http://processors.wiki.ti.com/index.php/Troubleshooting_CCSv5
Unfortunately I don't have a SEED emulator and therefore can't test the same configuration as you to validate all this, therefore I will have to ask you to contact their support and check what may be happening in this case.
The same can be said for the Test Connection button: this is a feature that is usually enabled by the emulator manufacturer when they create their support package. In other words, to enable this they must add a property similar to the one below (obviously adapting to their own utility) to their XML connection file (typically installed under C:\ti\ccsv5\ccs_base\common\targetdb\connections
<property Name="Diagnostic Command" Type="hiddenfield" Value="%ccs_base%/common/uscif/dbgjtag.exe -f %boarddatafile% -rv -o -F inform,logfile=yes -S pathlength -S integrity" ID="DiagnosticCommand"/>
Regards,
Rafael