Fast & Large block data transfer over USB - DE1/DE2 ?

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I assume something is holding it reset.

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You can test this theory by *not* using a reset signal in your design, eg., if there is a port called ext_rstN that you are using like rstN <= ext_rstN, just change it to

rstN <= '1';

And if your design works, then you know the external reset is staying asserted.

If you look at the Morph-IC-II schematic, the reset signal is likely coming from a FT2232 GPIO, and when you load via USB-Blaster, you do not deassert that pin, so you'll need to write a program to assert/deassert the reset GPIO.

Cheers,

Dave