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Now keil says
In-System Programming means that the device can be programmed in the circuit by using an utility such as the ULINK USB-JTAG Adapter.
In-Application Programming means that the application itself can re-program the on-chip Flash ROM.
Also UM10524 says
In-System programming (ISP) is programming or reprogramming the on-chip flash memory, using the bootloader software and the UART serial port. This can be done when the part resides in the end-user board.
Does that mean ULINK interfaced with SDDIO & SWCLK pins, access bootloader software & UART0 of the LPC then program the IC.
However I debug my code using USART0 with ULINK. It worked fine. No error. As by above statements ULINK will access UART) to program however I am using USARt0 to send code on PC terminal.
Or I misunderstood it.
For a number of NXP processor families, like LPC21xx, LPC23xx, LPC17xx etc, the processor gets factory-shipped with a boot loader.
That boot loader will check the state of a specific processor pin after reset. Depending on pin state, and what contents there already are in the chip (such as a code protection flag) will decide if the boot loader should start the end-user application which may then use UART0 for whatever the program wants. Or if the boot loader should stay active, and instead wait for firmware download commands on UART0.
So this is a In-system programming - you have to connect some external electronics to this specific pin and to UART0 to use this method to program the chip. Normally using FlashMagic. No ULINK involved - just something that converts from RS-232 voltage levels of your PC to the logic levels used by the processor. And something that trigs the magic pin to inform the boot loader that you want to download a new firmware instead of boot any application software.
Note that NXP is not the only manufacturer to do this...