Freescale thinks arduino is DEAD...LOL!

Yes; the tower cpu (mcf51cn128clk) does use the MII interface to connect to a phy. This uses 18 pins (!)
For 10baseT, it's apparently capable of using a simpler 7-pin interface, but the only PHY chip I can find that supports this has 80 pins and draws 100mA or so...

Oh yeah, here's a spreadsheet I put together showing the pins/signals that are used/available: