Well, i got a non-comforting solution.This error has nothing to do with program size.I can't run "hello world" example either.I have just removed some added mega-wizard component (altclk) and the error was removed .The thing is that i bump into this error numerous times:
-When i try to get nios to work above certain frequency (125 Mhz)
-when i connect sg-dma controller descriptors to descriptor memory instead of ssram bridge (as in standard ethernet example)
-when i connect 125 Mhz (different) clock output to txclk of TSE mac and altclk component to output (in order to get connection of GMII )
Anyone has run into similar issue(s) or was it just me ? :)