I always use JTAG.
If you can't download your program this could have multiple reasons but most should be fine since you selected the right CPU as target.
What could go wrong otherwise is wrong address offset for the data/program, for instance if your ROM starts at @8000000 and you set this wrong at for instance @7900000 then you could get this error but in this case it looks OK. So the only thing I can think of at the moment is that the CPU won't go into reset so the handshake to reset the CPU in download mode and program it get's disturbed or doesn't work as should. What the exact cause is, I can't tell you unfortunately but I suspect it is the reset.
So try some of the other options under Debug Target Driver Setup and the box Reset, which now is in "normal". Otherwise check the reset pin with a scope to see if it goes low/high.