Run as Nios II hardware boots old SW in EPCS

Ever since I upgraded to Quartus II 7.2 I have not been able to use the "Run as Nios II hadware" feature of the Nios II IDE. What happens if I try to do this is that the system boots to the old version of software flashed to the EPCS. Debug as Nios II hardware sometimes boots the SW being developed in the IDE but this is slow as it will try to set breakpoints but fails after a while by no connection to device.

I have debug level 3 enabled, software is in external memory, reset is to EPCS. To my understanding the NIOS IDE should be able to load the SW to the external RAM and start the CPU execution from there, at least before it worked. But now it seems to run some boot code from the EPCS which loads the SW from EPCS. I have not found a setting to correct this. My project is http://opensource.nokia.com/nwsp

Any ideas how to get this working? It would speed up my development as now I have to flash the EPCS every time I like to try a new version.

Thanks,

Tom Ahola