NEEK + Compact Configuration Design Example

Hi,
this is what i did so far:
went to             http://www.altera.com/support/examples/nios2/exm-nios-compact.html
downloaded      compact_config.zip
unziped            compact_config.zip
went to             /compact_config/factory_image_ex
double clicked   niosII_cycloneIII_compact.qpf
Quartus 9.1sp2 started
opened            SOPC
(auto convert 8.1 to 9.1)
clicked on generate
waited till end (success)
clicked on exit
clicked on start compilation
waited till end (sucess)
opened programmer
clicked start
closed programmer (after 100% reached)
started Nios II 9.1 IDE
clicked new nios application (hello_world_small template)
browsed to niosII_cycloneIII_compact_sopc.ptf
clicked finish
set system libraries properties to: .rodata and .text to cfi_flash
last action: run as nios II hardware.
And all i get is:
Reading System ID at address 0x04003048: verified
Initializing CPU cache (if present)
OK
Downloading 02000000 ( 0%)
Downloading 04001020 (95%)
Downloaded 1KB in 0.0s        
Verifying 02000000 ( 0%)
Verify failed between address 0x2000000 and 0x2000143
Leaving target processor paused
if all options to reduce footprint are set,
.rodata and .text set to onchip_mem
the example works fine.
0x2000000 is start of cfi_flash
what is wrong with this example? can anyone get it to work with flash?