OK, with help from ST and IAR's technical support, I solved the build issues in IAR related to version conflicts between IAR6 and demo code/examples written for IAR5 (see previous post). Everything builds fine now.
When I download code to the STM32VLDISCOVERY board, I see communication activity on the LEDs, IAR indicates the file loads with no errors, and everything seems fine. When I hit the reset button, the original demo code is still loaded? I can debug (albeit painfully slow ...), but no matter what, the code never REALLY gets loaded into the target? It always reverts back to original demo code.