Create a new Quartus project (Quartus version used 7.2)
Select File -> New Project Wizard
Just click the Next button
1. Select a folder for the project
2. Enter a name for the project
3. Click the Next button
If no files are to be added at this step, just click next
For Altera DE2:
1. Select the Cyclone II family,
2. Pick the EP2C35F672C6 device, and click Next
One can select here, for example, a different simulation environment such as Modelsim.
Click Next afterwards.
Just click the Finish button
Note: The topmost Quartus entity must have the same named as the project!