Compilation Error while running Processor in the Loop (PIL)

I am running a "test bench" style model in PIL mode with a referenced subsystem being the target. The referenced model is made to run in discrete time with a fixed step size. This test bench runs without issues in SIL mode. However when I run in PIL mode, I get the error shown in the attached image. My Config Parameter settings are what the error recommends but I still get this issue.

MCU Target- NXP (Freescale) KV4 implemented using the "Motor Control Development Toolbox for Kinetis" (MCToolbox). Please let me know if you need additional details.

Compiler- IAR Kickstart 32k limited edition.

Matlab ver- R2014b

Thanks Vish