Question: What is explained page 8-1' of the C2xx user's Guide ? "The READY pin can be used to generate ..., it may not respond fast enough to provide a READY-based wait state for the 1st cycle." Does it mean that if we drive low the READY pin for N cycles, sometimes it takes N+1 cycles to read a data and sometimes N cycles ?

Answer: The c2xx ready timings are very critical(tight). You cannot satisfy the ready timing requirements if you need 1 cycle wait state, using external ready line. If there is a need to extend wait states, use internal wait states. If additional control is needed using the ready line, the timings can be met only if you have at least one software wait state.