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Use MAX PLUS II 10.2 baseline, is free from ALtera web site. I´ve used and is a very good piece of sofware, if you are working with schematics entry. Very fast and straight forward, easy to understand.
You can also try QUARTUS but has no support for 7000 devices, only 7000A and 7000E. QUARTUS is also free for download.
With MAX II Plus 10.2 Baseline the AHDL design entry may be as well useful. It is kind of Abel++, with very good control of the generated logic.
If schematics entry is better or worse than for instance AHDL depends on both what you make and what are your preferences and existing skills. I personally feel writing Abel, AHDL, or VHDL is most often easier and faster than drawing schematics.
For such devices I believe VHDL is maybe not optimum. If you would like to try it, check if the free OEM version of Leonardo Spectrum supports your target chips--it would be the only descent way of using VHDL while employing MAX II Plus. The native VHDL compiler in MAX II + is just a bad joke.
Picelec was asking what is the best tools for it..
I would say that even if Max plus II do the job, Quartus II version 2.1 is certainly the most powerfull to do it. Supports both verilog and VHDL input and mixing of external IP core (or part of your own) in an easy way.
Another advantage to use a so powerfull tool with a tiny 7032 device, is for some, the possibility to learn the toolset without waiting hours to discover that you made an error.
There is, in my opinion, no best tools.. But tools that suits each individual's way of designing. An interesting way is to simulate (using modelsim) optimise with Leonardo spectrum.. And then compile for a vendor specific eg: Actel, Altera xilinx or other.. This way, you know in advance that your design works prior commitment to the actual silicon.