system console model is invalid

I am getting the same "Problem Occurred" and I am not even trying to use the system console. I am just trying to download and run a new .elf. I have a system ID module; it matches the ID and timestamp in system.h. I am using Quartus II 12.0. From Eclipse SBT 12.0, I select Run -> Run Configurations... and then highlight <project> Nios II Hardware configuration. Under the Project tab, I have the project name selected and the correct Project ELF file name. Under the Target Connection tab, I have refreshed the connections, verified the System ID Properties, disabled the 'Nios II Console' view, NOT checked the ignore System ID checks, and checked all the Download options (Download ELF to selected target system, Start Processor, Reset the selected target system). I don't know why there is a "Debugger" tab for a "Run" configuration. There is not an option for no debugger, so I kept the default "Altera CDI GDB Debugger." For the last two tabs, I kept the defaults. When "Run" is clicked, it does some things, says it is launching the Nios II Hardware configuration, then at 60% I get the Problem Occurred... The system console model is invalid. Cannot Launch.

My Nios design runs fine when when the data and instruction memories are preloaded with the generated .hex files. So right now, every time I make a Nios code change, I have to recompile and reconfigure the FPGA!

I have also tried downloading from the Nios II command shell. I type

nios2-download -g <project>.elf

and I get:

Using cable "USB-Blaster [USB-0]", device 1, instance 0x0

Processor is already paused

Initializing CPU cache (if present)

OK

Downloading 32KB in 0x5s (64.0KB/s)

Verifying 00000000 ( 0%)

Verify failed between address 0x0 and 0x6273

Leaving target processor paused

At this point, if I use the CPU reset button on my Cyclone IV GX demo board to reset the processor, it runs the new code. However, some of the program data seems to be in the separate data memory, which I don't think was downloaded (because the instruction memory download failed?), so this may not always work.

Finally, does anybody know what the sc_inf_0 module is that keeps showing up in the example designs? I can't find any information about it anywhere.