I am using Wireshark for network monitoring and it should give me all packets on the network no matter if they are corrupted or valid.
The packets are not transmitted to the PHY by the TSE.
In the design the UDP hardware is continuously generates packets but there is no action on the TX led on the board or on the wires to the PHY.
When I start pinging from my desktop computer I can see a blinking TX led in time with the ping response and I can observe the ping response on the TSE output.
For additional information:
The Quartus version is 11.1sp2 and the TSE is working in MII 10/100 mode.