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From closed thread http://www.keil.com/forum/62191/
If you use the .INI debug script, then the script needs to fully initialize the RAM being used. Internal SRAM should work without any, but external SDRAM will need the pins, controller and memory device to be initialized.
Also to avoid the "Flash Download Error/Algorithm" you want to Uncheck the "Update Target before debugging" in the utilities tab, and perhaps "Load Application at Startup"