UART verify failed!

I tried adding a simple uart in nios 2, this is wat i did n wat i got..

I added uart to sopc system once with default options and once with variable baudrate.

When generated and included in the bdf, in the default options case, i did not get any extra lines from nios system while in variable baudrate case i got four lines (txdata,rxdata,rts,cts).

Somebody please explain why this happens..

And when i compile, it compiled successfully..

But when i tried running a simple hello world program from nios2 ide with system library's settings as stdin=uart and stdout=uart instead of jtag uart, after building and downloading, i get the error as

Verify Failed!

Why do i get this error??

Please help..

Also if somebody has example of uart in nios2 (both hardware and software) it would be of great help ..