I've seen several recipes that call for Cool Whip Lite or Cool Whip Free ... what's the phase/policy on cool whip seeing as that it's almost straight HFCS?

It's listed in Phase I in the FAQ's.

Whipped Topping, Light or Fat-Free - 2 TBS

I almost bought some yesterday, the one with the SBD approved stamp...then I read the ingredients! It is almost 100% chemicals and man made crap. Decided I really did not want to put that into my body. I know there are some processed foods that are SBD "legal", but if I am doing this for my health I figure I should keep them to a minimum.

Everyone makes the choices that are best for them. I couldn't live on Phase 1 without a Peanut Butter Cup dessert (including cool whip) every now and then. But Cool Whip does tend to set off cravings for me so I too use it sparingly!