Problem with software download

Experimenting with simple_socket_server example.

Had no problem creating project and downloading.

Then, after deleting the project decided to rebuilt - from scratch; After invoking 'run' with 'Nios 2 hw', the Nios 2 IDE is stuck after this messages:

nios2-terminal: connected to hardware target using JTAG UART on cable

nios2-terminal: "USB-Blaster [USB-0]", device 1, instance 0

nios2-terminal: (Use the IDE stop button or Ctrl-C to terminate)

At this point the USB blaster blue light is on and nothing happens.

Rebuild does not help.

I'm using USB blaster with Stratix 2 board.

Any ideas?