Application Project "demo" created and original .c and .h file are moved inside src subfolder
now you should copy the contents of the original demo (all .c and .h files from "TE0xxx-Reference-Designs\reference-TE0xxx\SDK\SDK_Workspace\demo\src" already moved in the temporary folder "C:\demo_src_TE") inside the folder "C:\XilinxProject\reference-TE0xxx\SDK\SDK_Workspace\demo\scr" as already do in the figure above;
now you should right click the "demo" folder in "Project Explorer" and select "Project References";
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Project References checking
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now you should assure that "reference-TE0300_hw_platform" and "standalon_bsp_0" are both checked; if their box are not already checked, you should check them now;