Could you tell us what hardware you're using? Hardware using Virtex II FPGAs require the Xilinx 10.1 compile tools.
Next, I'd recommend checking to see if port 3580 is being blocked by a firewall or antivirus software. You can check by typing http://localhost:3580 into your web browser address bar.
If you have the right Xilinx tools and port 3580 is open, I recommend building your project without using the wizard and reattempting the compilation.
Let us know what you find.
Dave C.
Applications Engineer
National Instruments