NiosII error messages

[Altera_Forum]

I have a Windows 7 computer with Quartus 10.1 SP1 full version and Nios II Software Build Tools. It is not connected to a board yet. While waiting for my board to arrive, I wanted to do simple things with the software to get used to it. So I created a simple processor system with a CPU, on chip memory and a JTAG. The project generated fine when simulation is unchecked, but I got the following message with the simulation option checked: 

Error(10003): Can't open encrypted VHDL or Verilog HDL file "C:/.../simgen_temp_0/cpu.v" -- current license file does not contain a valid license for encrypted file.  I then went on to Eclipse to do a simple Hello world program in C. The project was built successfully. But when I clicked Run as -> Local C/C++ App, I get: Cannot run program "C:\altera\LearningProjects\FPGA4UTut\software\hello_world_0\hello_world_0.elf": Launching failed  or when I click Run as -> Nios II ModelSim, I get: Failed Executing: C:/altera/10.1/quartus\bin\perl\bin\perl.exe C:/altera/10.1/quartus\sopc_builder/bin/run_modelsim.pl C:\altera\10.1\modelsim_ase\win32aloem,C:/altera/LearningProjects/FPGA4UTut,demo2 return code: 127  I'm a bit confused with all these errors. Does it mean that I can't do any simulation without having the board?  I have also seen the NIOSII IDE as being more common in tutorials than the Eclipse Software Build Tools. Is it better to use the former?  Thank you very much

[Altera_Forum]

or when I click Run as -> Nios II ModelSim, I get: 

Failed Executing: C:/altera/10.1/quartus\bin\perl\bin\perl.exe C:/altera/10.1/quartus\sopc_builder/bin/run_modelsim.pl C:\altera\10.1\modelsim_ase\win32aloem,C:/altera/LearningProjects/FPGA4UTut,demo2 return code: 127  I had the same problem , it went away when I updated to 10.1sp1.

[Altera_Forum]

I don't know excatly the solution but i can say one thing,No relation between simulation and hardware infact simulation is meant to check the behaviour prior to hardware mounting. 

 NiOS IDE and Eclipse both are almost same but Eclise is the latest and having more features while NIOS IDE is same as before means now in every latest version of quartus,ALTERA maintains NIOS IDE same as before but keep updating ECLIPSE.