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So it has a 32 bit wide databus on the Avalon fabric. and then an offset of 8 isn't possible as the PIO has 4 - 32bit words address space. That may explain why setting the address to 0x02000010 in your Avalon master works.
I do not have a 16 bit Avalon MM Master at hand, and none seem to be available from the Qsys Library panel.
Maybe Qsys errs by allowing you to set the address to 0x020000008.
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How can i see that the altera_avalon_pio uses 32bit databus? If i look in qsys system inspector for the s1 signals of the pio i see that readdata and writedate uses only 8 bit.