Running from on-chip memory.

We were just having the same issue and found that the program was hanging in alt_main because of problems initializing the flash.

Click Run/Debug... Click the Debugger tab, and on the right hand side you can tell the debugger to break at alt_main. This lets you see how the initialization progresses. I suggest stepping into alt_sys_init() to see which individual init functions run successfully.

This should help narrow the problem down. For me, the program hung when initializing the flash. Just to get up and running, I commented the line initializing the flash in the Altera-generated code. After that, all systems were go.

Good luck!

Dave