Are you using V4.30 or V4.30a? According to the documentation V4.30a is required, but I’m not sure what the differences are.
Also as per the docs: "The SAM7X demo project requires the SAM7X IAR configuration files available from Atmel (AT91SAM7X256.i79, FlashAT91SAM7X256.d79, AT91SAM7X256.menu and ioat91sam7x256.ddf)", do you have these? Maybe these are now included in the latest IAR release also.
You can download the latest KickStart version for free from the IAR WEB site. I suggest upgrading to the latest then giving it another go.