Hello World buid error

I was unable to build the Hello World project in NIOS II IDE. When setting up the New Project under Specify Location I was unable to browse to myfirst_niosii\Software. I have myfirst_nios. This may be where the error initiates from. When I build the project I get the following error message in the console tab.

make -s all includes

5 [main] ? (3592) C:\altera\11.1\quartus\bin\cygwin\bin\sh.exe: *** fatal error - couldn't allocate heap, Win32 error 487, base 0x6D0000, top 0x6E0000, reserve_size 61440, allocsize 65536, page_const 4096

3 [main] sh 2720 fork: child -1 - died waiting for longjmp before initialization, retry 0, exit code 0x100, errno 11

/bin/sh: fork: Resource temporarily unavailable

make: *** No rule to make target `C:/altera/11.1/My', needed by `Niosii/DEO_NANO_SOPC.ptf/Debug/system_description/../obj/generated_app.mk-t'. Stop.

Build completed in 2.515 seconds

Thanks for assistance.