Video Processing using Altera Quartus 2

Ok.

So, the fact it uses 1% means something (or most of the design) is removed. I expect this design to use most of the chip, if it actually synthesises to anything, as you havent used any rams - all your "lines" will be stored as registers.

Also - this code is terrible - I have no real idea whats going on. Theres a load of multipliers and some windowing along a load of registers. Where is the source of the data? Is it really just a counter?

And where is the testbench?

This doesnt look like a serious design - no inputs and no outputs.