I ordered the Cyclone 4 board yesterday for $35 shipped. It has double the block RAM and multipliers, and the fabric is faster. Even if the Cyclone 2 board is adequate for the finished product I don't want to develop in a cramped space. Also downloaded and installed the latest Quartus II software - at over 3 gigs it's a pig! And they ripped out the simulator! If you want to use the sim it's still kind of in there hiding (you can make a bat file to invoke it) but seems pure TCL or something and it is quite a bit slower than the old native simulator. Here is a paper on how to use the new sim:
http://www.altera.com/education/univ/software/qsim/unv-qsim.html
Here is a nice quick tutorial for students on schematic entry and simulation:
http://cnx.org/content/m42302/1.3/
The controls are similar to the old sim, and it will open the old waveform stimulus files, but it's kind of awkward and slow to use. When I was still gainfully employed the Altera rep told me almost no one used it, so there it went.
Not to make too much of this, but simulators have been dogging me to no end for what seems like forever. The industry standard is ModelSim which is a hodgepodge of scripts, text interfaces, libraries and whatnot, and costs through the roof - I hate it. The Quartus simulator has kept me afloat and relatively content up to now. Po me, po me another drink. Simulation is incredibly interesting and fun for me because I get to see my code actually working, and when I see it (inevitably) malfunction I often get a deeper insight into the code and the application. I suspect the reason a lot of HDL coders don't like the sim phase is because of the funkiness of ModelSim.
[EDIT] I just tried to fire up my old v9 Quartus to get some work done and the webpack version 12.1 I downloaded and installed yesterday broke it! I see that v9.1SP2 supports Cyclone 4 and has the old simulator, gonna spend another day downloading and installing that. Due to SW churn (OSes & applications) I live in constant fear that the design chain I've become accustomed to and efficient with will break entirely.