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Thanx BillA,
1.Simple Socket Server Example is working with Quartus 5, and use telnet as a server. with lwIP only. (Example code given along with NIOS-II it IDE tool )
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You're welcome. I was commenting on current versions of NIOS tools which don't support lwIP.
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2. Is the API's i am using on Linux (bind, connect, etc.) while writing socket programming is same on lwIP?
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Yes, the sockets API in lwIP is pretty close to standard.
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3. If I wish to take data through Ethernet using lwip and after processing it ...i want to forward it to some other ip address or some other FPGA modules, does it required OS in between?
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No, lwIP works well without an OS and it's "RAW API" is very efficient. If you use sockets, of course you'll need 2 and have to pass data from one to the other. sockets do require an OS in lwIP - the RAW API does not, but does require you monitor a timer and do the TCP housekeeping by making calls to lwIP timing functions. I've posted a message on the lwip-users mailing list (see lwip on Savannah) on how to do this easily with no OS.
You can use an OS and FreeRtos is used a lot by many lwIP users.
Bill