Cyclone3 Board Test System message: Please Configure FPGA with BTS design

I have the Cyclone3 dev board with an EP3c120.

The documentation for the Board Test System says to put switch sw5 into position 1. When I do this and power on the board, the red error LED is lit.

When I open the GUI for the Board Test System, it gives a message box with the message "Please Configure FPGA with BTS design" and an OK button. Clicking the Ok button removes he messagebox, however the Configure menu item only has EXIT as a valid option.

Help please.....