> do i need to download a different program to actually run a program on the
> processor or i can i just run "msp-430 insight"?

You need to run msp430-gdbproxy too. It is included in the install
package of the Windows version, at unix I don't know.
 
> if so, what should i choose for the target settings?

See http://www.mikrocontroller.net/mspgcc.en.htm.

Petr

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