Where to find "Linux compatible Quartus project"

I took a peek at the Hardware tutorial... it only provides about 1 MB of sram to work with. That's nowhere near enough memory to run Linux.

I would recommend modifying the standard_32 design for whatever development board you're using. It has all the basic requirements (+ some) for a running Linux system.

Remember, the standard_32 design does *not* have compact flash support. You'll need to disable the ATA section within the kernel configuration for the kernel to build properly.