Hi,
I know spartan boards are all discontinued now and this might be blindingly obvious to people with more background in FPGA stuff, but I'm a java/c# dude and it caught me out for a bit. I think there is a typo in the tutorial at "Getting Started with FPGA - Digilent Reference"
I think the Device type for the nexys-2-1200 should be XC3S1200E not the XC3S1600E shown in the doc
HTH
Paul