Linux Filesystem project problem

I am using Quartus II 6.0 and Nios II IDE 6.0.

I configured de SOPC builder so I can compile the linux kernel project fine and download it to my DE2 board. Now, I am trying to configure a linux filesystem project, but the nios IDE keeps warning me that there is no space available for the packages I have chosen. I realized that the nios IDE detected 0k of available memory on the device, but I have configured a CFI flash with 4 MB on it. Does anybody know what I am doing wrong?