Hello,
Running the module generator gives you two .vhd files. One is the generic component declaration for the P&R tool. One file has the name xxxxx_sim.vhd! You need to import this file from the ispLEVER project navigator for the functional simulation! At least make sure that the file name of the init file matches the GENERIC declaration in the component declaration and in the instantiation! Than it should work.
Best Regards
Joerg Siemers