Ok, didn't do the detailed in-depth yet but just wanted to make sure it worked.
Caveat: and a big one! the project is not a bootloadable one so once you program your $4 prototype board you can't restore it unless you have another $4 board or a $25 Pioneer or a $90 miniprog, or other programmers including Altera and Xilinx programmers among the ones supported by Keil, but I only have the Pioneer and the $4 prototype board (2 of them one 42xx the other 41xx and I haven't tried it with the 41xx yet).
So I took the project and built it, boot loaded it into the prototype board.
Then I made a blinky program for the external chip and uploaded the .hex code following the instructions.
wired the VDD, GND, XRES, SWDIO & SWDCLK
And it runs the blink program on the external chip just fine
Again, this will disable the bootloadable code on the prototype kit, I guess I can work on making the $4 programmer code bootloadable so you don't brick the prototype board.
I can recover it because I have the pioneer to override the code, but in any event, once you program the prototype kit as a programmer you can use it indefinitely by changing the python script to point to a different hex file to program your target chip.
Edit2: One more caveat, unless you put the right decoupling caps to use the internal regulator, you have the choice of shorting pins but then you have to feed it 1.8V +- 5% available on the VCCD pin but that is not exposed on the headers and it just goes to C1, I guess you can solder a wire to get the VCCD 1.8 rectified voltage if you decide to short the target chip pins to use the external regulated supply.
But might as well put the decoupling caps so you can feed anything from 1.8V to 5.5V.