Hi
I think the problem come from the files more than the IDE.
There is no project file for hello application so I assume you have created a neww one.
InCircleOS-2.0\Circle\Applications\Hello\ there are source files but also a .rapp file.
This file should not be there at least if is there it should be with a .rprj file in the same folder.
This might be the reason why in this particular case you have this problem
When you created your project there must be a confusion between your new .rapp and the older one
The solution is to remove all the files that are not source files or linker script (.rprj,.rapp,;dbi,.mdb,.ctx,...)and to create a new project.
I will put a version without these .rapp file on the download link.
Matloub