Last time we showed you how to set up an ISE project for programming the Elektor FPGA development board, with a simple LED blinker as a sample application. In this installment we look at how to set up a hierarchical project structure with components you develop yourself. As a sample application for this installment, I chose a simple up/down counter with a two-digit seven-segment LED display. In this installment I also tell you how to define the pins on the board directly in the User Constraint File (UCF) without using the PlanAhead tool.