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If the packets are not forwarded to hardware, then they're forwarded to stack. This means that You're using wrong IP or wrong port for data transmission.
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I am assigning port no: 8 and IP address 192.168.1.207 for nios-ii board
wheras the server machine who is sending high speed UDP packet having port no :9 and IP address: 192.168.1.66 its an Linux Fedora-5 machine.
* as i have already mentioned in my previous post: when i send slow UDP packets towards nios-ii based client (by putting smoll delay between consequential packet send) it collect all packet without saying "no free buffer for rx".